Root Inc’s former chief marketing officer – accused in a company lawsuit of siphoning $10 million from it – has been ordered held in contempt of court, and must find another way to pay his lawyers.
Brinson Caleb “BC” Silver, Root’s CMO from November 8, 2021 to November 9, 2022, was ordered detained on June 20 by United States District Court Judge Sarah D. Morrison of the Southern District of Ohio “ until he has provided information and documentation to his satisfaction. ” to a receiver – a custodian of Silver’s personal property, money, and assets.
Earlier this month, Morrison granted a motion from Root Inc., parent company of Root Insurance, to appoint a receiver. The motion was filed by Root when it was discovered that Silver was trying to sell one of the properties and was spending “huge”.
Related: Fired Root CMO Accused of Stealing Millions in ‘Vulnerable’ Expenses; The Judge Appoints the Receiver
Root accused Silver and others in an amended lawsuit filed in February of defrauding the insurtech of at least $9.9 million.
According to Morrison’s order, “Silver has not turned over all books and records, amounts, and other information to the recipient” as ordered in May.
Morrison also denied a motion filed by Silver and his companies to modify an injunction and the receivership to pay attorney fees. A previous temporary restraining order allowed Silver to spend up to $5,000 in daily personal living expenses. Silver asked the court for permission to pay attorneys from the estate who received more than his allowances because of the “‘complex’ nature of this litigation and the potential criminal implications.”
Morrison fired back and said the receiver’s requests for information and documentation were “not complicated at all” and that Silver “refused to respond in good faith to some of the receiver’s most basic and controversial requests.” Citing court precedent that a criminal defendant does not have the right to access the proceeds of alleged fraud even for counsel of choice, Morrison on June 21 denied Silver’s motion.
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