Lower Brule default leads to $20 million lawsuit

An insurance company that purchased a $20 million federal loan guarantee from a Lower Brule Sioux tribal entity has filed suit against the federal government after the tribe defaulted on the loan.

Great American Life Insurance Co. claims in its filing that the federal government fleeced the company by failing to make good on the loan guaranty. The company argues the federal government was obligated to pay the loan after LBC Western Holding defaulted.

LBC Western Holding was a tribal shell company used to purchase Westrock Advisors, a New York-based brokerage firm. The tribe managed to purchase the heavily-indebted Westrock with a Bureau of Indian Affairs loan guarantee for $22.5 million. The loan guarantee was originally issued to the Lower Brule Community Development Enterprise, which then sold the guarantee to Great American Life. The proceeds of the sale were used to buy Westrock.

http://www.argusleader.com/story/news/2016/07/09/lower-brule-default-leads-20-million-lawsuit/86860636/