Fired Root CMO Accused of Stealing Millions Spends ‘Lavishly’; Judge Appoints Receiver
According to court records, Root Inc’s former chief marketing officer – accused of stealing about $10 million from the company – has not made court appearances, spent money in violation of court orders, and has a bench warrant out for his arrest.
Judge Sarah D. Morrison in U.S. District Court for the Southern District of Ohio on May 10 issued a bench warrant for Brinson Caleb “BC” Silver after he failed to appear in court to answer a motion for contempt filed by Root Inc, parent company of Root Insurance, over Caleb’s alleged violation of a restraining order preventing or limiting him, his companies, or associates from spending money or selling properties or possessions Root said were bought with stolen funds.
Silver, employed by Root from November 8, 2021 to November 9, 2022 when he was let go as part of company-wide layoffs, was unable to get to a May 9 appearance because he was in the United Arab Emirates, according to court documents.
Root alleged in an amended lawsuit filed in February that Silver and others defrauded the insurtech of at least $9.9 million. Root said Silver “misused his position as CMO to steal breathtaking sums from Root through a three-step plan” that included payments to an outside advertising agency. These funds, totaling $13 million, were then transferred back to Silver via Collateral Damage, a company owned by Silver and/or Silver’s sister Paige McDaniel. That firm then sent funds to others, including Eclipse, another company allegedly owned by Silver, who used the money to purchase luxury real estate in Venice, California and Miami, Florida, Root claims.
Silver was ordered to pay Root’s attorney fees and costs related to its latest investigation of Silver’s spending, and Silver was fined $500 for failure to comply the court’s previous order limiting Silver’s spending to “personal expenses for day-to-day living in an amount no greater than $5,000.” Silver’s attorneys have also withdrawn from the case, according to records.
Root’s investigation revealed Silver and Eclipse “had been using and transferring assets vastly in excess of the limits” set by the court. Root said Eclipse sent more than $40,000 to an unknown entity, and Silver “spent lavishly while traveling the globe.”
“For example, he spent $20,000 on plastic surgery and another $8,000 at a luxury resort on Bali,” Root said in court documents. Silver has also allegedly made transfers of tens of thousands of dollars to his PayPal and Venmo accounts, and closed a bank account by withdrawing more than $130,000 in cash, Root said.
Judge Morrison issued an order to appoint a receiver – a “custodian and liquidator for all personal property, monetary, and real property assets in the possession, custody, or control of” Silver or his companies.
“The receiver shall take immediate possession, control, management, operation and charge of the receivership defendants and receivership property and maintain all such entities and property in a receivership estate,” Morrison ordered. The receiver will furthermore take control of Silver’s businesses and take steps to liquidate them.