China Construction Bank Sued Over LC Fraud Connected to Vesttoo

White Rock, an insurance solutions provider owned by Aon, filed a lawsuit on 27 August 2024 against China Construction Bank (CCB), alleging its involvement in a multi-billion-dollar fraudulent LC scheme centering around now-bankrupt insurtech firm, Vesttoo.

The lawsuit, filed in the Supreme Court of New York, claims that White Rock was misled into engaging in reinsurance transactions since it believed that valid letters of credit issued by CCB backstopped the transactions. In July 2023, however, CCB refused to honor the LCs, feeding suspicion of fraud.