United States Fidelity and Guaranty Co. charges in a lawsuit that an Indianapolis developer provided false information to obtain a $44 million loan to pay for the construction of industrial buildings in Cincinnati, Nashville, Tenn., and Indianapolis.
The Baltimore-based insurance company, a unit of USF&G Corp., alleges fraud and breach of contract by Indianapolis-based Phillip R. Duke & Associates in the suit, filed Wednesday in U.S. District Court in Baltimore. It said the partnership covered up facts about its anchor tenant.
The insurer is seeking to recover the $44 million loan plus $20 million in punitive damages.
USF&G said Duke & Associates claimed in 1990 that a single company, McDowell Packaging & Supply Co Inc., had leased two buildings in a Cincinnati business park called World Park but did not mention that McDowell had defaulted on its rent and was in financial difficulty.