In April 2019, Marsh & McLennan Companies, Inc. completed the acquisition of Jardine Lloyd Thompson Group plc (JLT).
Prior to the acquisition, JLT identified payments to a third-party introducer that had been directed to unapproved bank accounts. These payments related to reinsurance placements made on behalf of an Ecuadorian state-owned insurer between 2014 and 2017. In early 2018, JLT voluntarily reported this matter to law enforcement authorities.
In February and March 2020, money laundering charges were filed in the United States against a former employee of JLT, the principals of the third-party introducer and a former official of the state-owned insurer. These individuals, including the former JLT employee, have since pleaded guilty to criminal charges. (See here, see also this prior post).
Recently, Marsh disclosed:
“In 2017, JLT identified payments to a third-party introducer that had been directed to unapproved bank accounts. These payments related to reinsurance placements made on behalf of an Ecuadorian state-owned insurer between 2014 and 2017. In early 2018, JLT voluntarily reported this matter to law enforcement authorities. In February and March 2020, money laundering charges were filed in the United States against a former employee of JLT, the principals of the third-party introducer and a former official of the state-owned insurer. These individuals, including the former JLT employee, have since pleaded guilty to criminal charges. In December 2021, the U.S. Department of Justice (DOJ) notified JLT of its intention to decline to pursue any charges against any JLT entity and to seek disgorgement of $29 million in alleged gross profits on this account. JLT has agreed in principle to this resolution, and the Company recorded a charge for this amount in the fourth quarter 2021. We are cooperating with all ongoing investigations related to this matter.”
