Someone Stole My Rolls Royce
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Investing in California real estate in the 1980’s was fun. Whatever you bought you could sell for more. The doctrine: “there is always a greater fool than I,” worked.
Li Chen Hua immigrated to California from Hong Kong in 1981. He did it legally, winning a lottery for a Green Card. He came to the U.S. with his savings (converted from Hong Kong dollars to diamonds for ease of transportation).
Li set himself up in a condominium on Wilshire Boulevard just west of the community known as Westwood and east of Beverly Hills. It only cost him $500,000. He bought three other condos in the same building that first year and paid his mortgages and living expenses from the rent he collected.
In 2008 the bottom fell out of the California real estate market. Mr. Li, found himself owning real estate mortgaged to over $14,000,000 but worth only $9,000,000. The rents he collected were not sufficient to pay the various mortgages and allow him to continue in the life style with to which he had become accustomed. He needed to make a great deal of money fast and then, leaving his mortgagees to fend for themselves, return to Hong Kong for a pleasant retirement.
Mr. Li’s cousin was the number one luxury car dealer in all of the People’s Republic of China. She had no competition, an almost unlimited supply of vehicles, and overhead limited to shipping costs. Li’s account at CitiBank, Hong Kong was growing. He put his savings in broad-based stock mutual funds specializing in high risk emerging markets. His investments doubled in two years.
Li decided it was time to stop while he was ahead. He would ship his pRoger Parsons, the claims supervisor at Massive and Stoney Insurance Company, looking out his window at the slow moving, brown Illinois River, was about to order a check for the settlement when he received a report from the NICB that the car had been shipped by Li to Hong Kong a month before the reported theft. Customs officials in Hong Kong reported the car arrived and was picked up by its consignee. The NICB had copies available of the shipping documents with Mr. Li’s signature.
Massive and Stoney retained counsel to examine Mr. Li under oath about the theft. Li and his attorney appeared at Massive’s lawyer’s office belligerent, demanding immediate payment of a legitimate insurance claim.
“Mr. Li is a wealthy and highly respected member of the community. This examination under oath is a waste of time and an attempt to create useless and unwarranted delays. If payment is not received immediately, Mr. Li will sue Massive and Stoney for bad faith” Len Shyster, Li’s attorney, orated.
The examination under oath was not completed. Using his testimony at the examination under oath the NICB, working with Massive and Stoney and fifteen other insurers, the California Highway Patrol, the US Customs Service and the Fraud Division of the California Department of Insurance resulted in a major arrest of 41 individuals, including Li, for insurance fraud, grand theft, and fraud against lenders. A ring of insurance criminals who made hundreds of millions of dollars from insurers across the United States was stopped because one of the criminals allowed his customs broker to record the VIN number of his automobile before it was shipped out of the US.
Li, the instigator of the fraud, testified against his coconspirators. He served six months of electronic confinement to his penthouse apartment and paid $250,000 in restitution to one insurer.
He is now living a comfortable retirement in Hong Kong.
ZALMA OPINION
The state should be proud that they took down a massive insurance fraud scheme but, because they needed him, Li retired a rich man to Hong Kong. He may regret it now that the Communist Party took over Hong Kong.
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(c) 2022 Barry Zalma & ClaimSchool, Inc.
Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 54 years in the insurance business. He is available at http://www.zalma.com and [email protected].
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Convicted Criminal Seeks to Compel Receiver to Protect his Assets
Post number 5291
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The Work of a Court Appointed Receiver is Constitutionally Protected
In Simon Semaan et al. v. Robert P. Mosier et al., G064385, California Court of Appeals, Fourth District, Third Division (February 6, 2026) the Court of Appeals applied the California anti-SLAPP statute which protects defendants from meritless lawsuits arising from constitutionally protected activities, including those performed in official capacities. The court also considered the doctrine of quasi-judicial immunity, which shields court-appointed receivers from liability for discretionary acts performed within their official duties.
Facts
In September 2021, the State of California filed felony charges against Simon Semaan, alleging violations of Insurance Code section 11760(a) for making...
When There are Two Different Other Insurance Clauses They Eliminate Each Other and Both Insurers Owe Indemnity Equally
Post number 5289
In Great West Casualty Co. v. Nationwide Agribusiness Insurance Co., and Conserv FS, Inc., and Timothy A. Brennan, as Administrator of the Estate of Pat- rick J. Brennan, deceased, Nos. 24-1258, 24-1259, United States Court of Appeals, Seventh Circuit (February 11, 2026) the USCA was required to resolve a dispute that arose when a tractor-trailer operated by Robert D. Fisher (agent of Deerpass Farms Trucking, LLC-II) was involved in a side-impact collision with an SUV driven by Patrick J. Brennan, resulting in Brennan’s death.
Facts
Deerpass Trucking, an interstate motor carrier, leased the tractor from Deerpass Farms Services, LLC, and hauled cargo for Conserv FS, Inc. under a trailer interchange agreement. The tractor was insured by Great West Casualty Company with a $1 million policy limit, while the trailer was insured by Nationwide Agribusiness Insurance Company with a $2 million ...
Opiod Producer Seeks Indemnity from CGL Insurers
Post number 5288
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Insurers Exclude Damages Due to Insured’s Products
In Matthew Dundon, As The Trustee Of The Endo General Unsecured Creditors’ Trust v. ACE Property And Casualty Insurance Company, et al., Civil Action No. 24-4221, United States District Court, E.D. Pennsylvania (February 10, 2026) Matthew Dundon, trustee of the Endo General Unsecured Creditors’ Trust, sued multiple commercial general liability (CGL) insurers for coverage of opioid-related litigation involving Endo International PLC a pharmaceutical manufacturer.
KEY FACTS
Beginning as early as 2014, thousands of opioid suits were filed by governments, third parties, and individuals alleging harms tied to opioid manufacturing and marketing.
Bankruptcy & Settlements
Endo filed Chapter 11 in August 2022; before bankruptcy it ...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lost the ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah. Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and wonder how did all these wonderful things come into being. Jews believe the force we call G_d created the entire universe and everything in it. Jews feel G_d is all seeing and knowing and although we can’t see Him, He is everywhere and in everyone.We understand...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
Read the full article at https://www.linkedin.com/pulse/passover-americans-barry-zalma-esq-cfe-5vgkc.
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lostthe ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah.
Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and ...
You Get What You Pay For – Less Coverage Means Lower Premium
Post number 5275
Posted on January 30, 2026 by Barry Zalma
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When Experts for Both Sides Agree That Two Causes Concur to Cause a Wall to Collapse Exclusion Applies
In Lido Hospitality, Inc. v. AIX Specialty Insurance Company, No. 1-24-1465, 2026 IL App (1st) 241465-U, Court of Appeals of Illinois (January 27, 2026) resolved the effect of an anti-concurrent cause exclusion to a loss with more than one cause.
Facts and Background
Lido Hospitality, Inc. operates the Lido Motel in Franklin Park, Illinois. In November 2020, a windstorm caused one of the motel’s brick veneer walls to collapse. At the time, Lido was insured under a policy issued by AIX Specialty Insurance Company which provided coverage for windstorm damage. However, the policy contained an exclusion for any loss or damage directly or indirectly resulting from ...
