Silverstein's Quick Profits From 9/11
Mr Silverstein, who leased the downtown site destroyed on September 11, 2001, claims Allianz still owes him $US553 million and that a second insurer, Britain's Royal & Sun Alliance, owes him $US250 million.
At the end of two trials in 2004, a federal court decided that the insurers owed a maximum of $4.6 billion, more than the $3.5 billion term of the insurance policy. Silverstein had originally claimed $7 billion, attempting to prove that the crashing of the two planes into two towers constituted two separate events. The two sides have been locked in a grueling appraisal process to determine exactly how much of the $4.6 billion must be paid out.
The German insurer Allianz spokeswoman said the insurer had already paid almost $US2 billion ($A2.56 billion) in claims from the World Trade Center disaster, settling with all its policy holders except for Silverstein and the Port Authority who Allianz almost $US550 million ($A704.72 million)
Silverstein is determined to rake in every last penny possible from 9/11 and has already secured billions from other insurers without a blink of an eye over the fact that he leased the property just six weeks before the attacks and has since been caught in an admission that he ordered at least one of the buildings, WTC 7, "pulled" on 9/11.
In February of 2002 Silverstein Properties won $861 million from Industrial Risk Insurers to rebuild on the site of WTC 7. Silverstein Properties' estimated investment in WTC 7 was $386 million. This building's collapse alone resulted in a profit of about $500 million.
In May 2005 we carried a report from press release website PR Web which highlighted a proposal by a small shareholder to withhold approval from the Board of Directors for failure to investigate signs of insurance fraud on 9/11 had been published on the website of the Allianz Group in preparation for its May 4th annual meeting.
The report stated:
Allianz Group published a shareholder proposal on April 20th faulting management for ignoring signs of insurance fraud on 9/11/2001. Allianz carried a significant portion of the insurance coverage on the WTC, and stands to pay a corresponding portion of the $3.5 billion payout currently being litigated in New York. In his proposal, shareholder John Leonard, a California native and a publisher of books on 9/11, pointed to reports that building WTC 7 apparently collapsed by demolition, and for no plausible reason related to the 9/11 attacks. Management replied that it relied on official US government reports which made no mention of such evidence.
The Allianz Group is incorporated in Germany and has approximately 570,000 shareholders. Under German Stock Companies law, publicly held companies are required to publish shareholder proposals that meet certain criteria.