Root Inc. Files for Default in Litigation Against Jailed Former CMO
The nearly year-long saga involving Root Inc. and its former chief marketing officer continues – with him in county jail.
Brinson Caleb “BC” Silver, Root’s CMO from November 8, 2021 to November 9, 2022, has been in jail in Butler County, Ohio since June, according to the jail’s website. A federal judge in the Southern District of Ohio ordered Silver detained for contempt on June 20.
Root Inc., parent company of Root Insurance, has accused Silver and others, in a complaint seeking damages and injunctive relief first filed in February, of defrauding the insurtech of about $10 million. During his short time as CMO, Silver allegedly stole money meant for advertising campaigns in a series of transfers to companies owned by him or his family, and then spent the funds on luxury real estate, WaveRunners, and vacations.
According to court records, Root’s attorney last week filed an application for entry of default since Silver has failed to answer or plead to an amended lawsuit. Records show Silver has largely been uncooperative during the legal process – denying the delivery of summonses, failing to provide information to a court-appointed custodian of his property and assets, and violating a court order limiting his spending.
Related: Fired Root CMO Accused of Stealing Millions Spends ‘Lavishly’; Judge Appoints Receiver
Root at the end of September filed a second amended complaint requiring Silver to plead quickly, but he missed the deadline.
The latest filing from Root said Silver’s attorneys withdrew as his presentation and he remains without counsel. Also in June, U.S. District Court Judge Sarah D. Morrison denied Silver’s motion to modify an injunction and the receivership in order to pay attorney fees. A previous court order allowed Silver to spend up to $5,000 on day-to-day personal living expenses.
Update: However, in a Nov. 15 entry to the docket, the application for default was denied since Silver did respond to the first amended complaint filed earlier this year.
In the meantime, a court-appointed receiver has been collecting and selling off Silver’s assets, including property he allegedly paid for with the ill-gotten gains, such as a home recently auctioned off for about $1.4 million.
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