Individual Surety- Fraud Game Over

Individual Sureties have plagued the surety industry over the past decade because many times the assets purported to back the guarantee were not liquid, or worse, fraudulent.   When an individual surety did not fulfill its guarantee, legitimate corporate sureties and their agents reputations were marred.    The defense bill passed by Congress last week contains a provision to reduce fraud on federal projects by requiring assets backing individual surety bonds to be real and deposited with the federal government.

Read more about the bill here: http://www.enr.com/articles/37986-individual-surety-fraud-game-over

Any questions regarding this? Contact Lynne Cook, SVP, Surety at cooklw@ecsinsure.com.

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