According to court records, Root Inc’s former chief marketing officer – accused of stealing about $10 million from the company – failed to appear in court, spent money in violation of court orders, and had a bench warrant for his arrest. to him.
Judge Sarah D. Morrison of the US District Court for the Southern District of Ohio on May 10 issued a bench warrant for Brinson Caleb “BC” Silver after he failed to appear in court to answer the motion for contempt filed by Root Inc. , parent company of Ang Root Insurance, due to Caleb’s alleged violation of a restraining order that prevents or limits him, his companies, or associates from spending money or selling property or assets that Root says bought with stolen funds.
Silver, who worked at Root from November 8, 2021 until November 9, 2022 when he was let go as part of a company-wide layoff, was unable to attend the May 9 appearance because he was in the United Arab Emirates, according to the documents. in court.
Root alleges in an amended lawsuit filed in February that Silver and others defrauded the insurtech of at least $9.9 million. Root said Silver “abused his position as CMO to steal significant sums from Root through a three-step plan” that included payments to an outside advertising agency. These funds, totaling $13 million, were transferred back to Silver through Collateral Damage, a company owned by Silver and/or Silver’s sister Paige McDaniel. That company then sent funds to others, including Eclipse, another company allegedly owned by Silver, who used the money to buy luxury real estate in Venice, California and Miami, Florida, Root claims.
Silver was ordered to pay Root’s attorney fees and costs related to the latest investigation into Silver’s spending, and Silver was fined $500 for failing to comply with a previous court order limiting spending. of Silver’s “personal expenses for daily living in the amount of no. more than $5,000.” Silver’s attorneys also withdrew from the case, according to records.
Root’s investigation revealed that Silver and Eclipse “used and transferred assets in excess of the limits” set by the court. Root said Eclipse sent more than $40,000 to an unknown entity, and Silver “was spending a lot while traveling the world.”
“For example, he spent $20,000 on plastic surgery and another $8,000 on a luxury resort in Bali,” Root said in court documents. Silver also allegedly made transfers of tens of thousands of dollars to his PayPal and Venmo accounts, and closed a bank account by withdrawing more than $130,000 in cash, Root said.
Judge Morrison issued an order appointing a receiver – a “custodian and liquidator for all personal property, money, and real property assets in the possession, custody, or control of” Silver or his successors. company.
“The receiver shall immediately assume ownership, control, management, operation and compensation of the receiver’s defendants and the receiver’s property and shall maintain all such entities and assets in a receivership estate,” Morrison ordered. . The receiver will further take control of Silver’s businesses and take steps to liquidate them.
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