China Construction Bank Sued in U.S. Over Reinsurance Fraud Losses

(Bloomberg) — China Construction Bank Corp., the nation’s third-largest commercial lender, was accused in a U.S. lawsuit of enabling an alleged massive fraud in the reinsurance industry that left companies with “monumental losses” and sinking stock prices.

The bank allowed employees to conspire with Israeli insurance startup Vesttoo Ltd. to sell reinsurance policies that weren’t real, according to a complaint filed late Thursday by the Porch Group Inc. in Manhattan federal court.