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Avrahamis’ Captive Manager Disputes Ruling

On Behalf of | Dec 28, 2017 | Captive Insurance

Multiple sources have reported that attorney Celia Clark, who formed the micro captive Feedback, for the Avrahamis, has commented on Judge Mark Holmes’ decision to deny the motion for reconsideration. She claimed that the IRS has reviewed and approved very similar drafting templates to their administrative actions policy that the court criticized in its decision.

The court pointed out that one policy was so “ill-drafted” that it was both a claims-made and an occurrence policy. She argued that this was a generalization. Clark stated that they offered a template of the administrative policy and other policies being used by Avrahami at trial, but they were not accepted into evidence.

The original verdict was reached in August. The court suggested that the captive did not function as an insurance company and that the payments received by the Avrahamis from their captive did not meet the requirements of certain tax elections.

After fifteen years of supervising and advising micro captives, Clark & Gentry, Clark’s law firm, announced that it would close its captive operations by December 31, 2017.