Trustar Underwriting Inc., an Ontario-based company that carries on business as a managing general agent in the commercial insurance industry, was placed in receivership on December 24 on its own application.

Trustar recently commenced proceedings against Daniel Moses, who until recently was the President and CEO of Trustar. The company is conducting an investigation into Mr. Moses which has revealed substantial evidence of apparent misconduct, including allegations that Mr. Moses has underwritten insurance policies, failed to place them with insurers, made representations to clients and others that such policies were in place when in fact they were not, and appropriated funds paid as premiums for his own benefit and to the detriment of Trustar.

Trustar is working with insurer clients and other brokerages to find willing insurers to accept the corresponding policies of insurance with a view to covering uninsured clients. However, that work is being hampered by other brokerages and third parties who are aggressively pursuing Trustar.

In addition, the sheer volume of inquiries from stakeholders is overwhelming Trustar staff, and distracting them from completing the necessary work to advance the investigation and mitigate losses.

Grant Thornton is the receiver.

Counsel is McCague Borlack for Trustar, DLA Piper for the receiver and Ross Nasseri for Daniel Moses.