The following e-filed documents, listed by NYSCEF document number (Motion 001) 2, 6, 7, 15, 16, 17, 18, 19, 20, 21, 22, 23, 26, 32, 33, 34, 35, 36, 37, 38, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 141, 149, 150, 167 were read on this motion to/for MISC. SPECIAL PROCEEDINGS. DECISION ORDER ON MOTION Petitioner, the Superintendent of Department of Financial Services of the State of New York (“Petitioner” or “DFS”), moved by order to show cause dated October 19, 2017 (“Order to Show Cause” or “OTSC”) and Petition for an order appointing the Superintendent and her successors1 in office as liquidator (“Liquidator”) of respondent Park Insurance Company (“Park” or “Respondent”) and directing the Liquidator to take possession of the property of Park and to liquidate its business and affairs. Park opposed the requested relief in the Petition and asserted an affirmative defense that Park is solvent as of September 30, 2018. This Court conducted a trial in this matter on December 4, 5, 6, and 11 of 2018, and February 14, March 5, 6, and 7, April 9, 10, and 11, and May 7, 8, 28 and 29 of 2019. Post-trial briefs were filed by the parties on July 19, 2019, and closing arguments from counsel for the parties occurred on September 5, 2019. Introduction As will be demonstrated in great detail below, Park has engaged in a high-stakes gambit to intentionally suppress its reserves, utilized questionable means to improperly increase its admitted assets, failed to obtain the necessary regulatory approvals from DFS to offer various insurance products to the public, and either circumvented or even violated, at the very least, the intent and spirit of this Court’s Temporary Restraining Order (“TRO”) contained in the Order to Show Cause to limit its new business, except with DFS’s express consent, in order to safeguard the public from further harm pending the outcome of this proceeding. Ultimately, Park’s actions amount to a veiled attempt to conceal its insolvency in order to stave off liquidation of its company. Background History Park’s Failure to Comply with DFS Orders Prior to this Liquidation Proceeding Park has demonstrated a longstanding and continued failure to comply with DFS directives and Orders. Specifically, Park has failed to comply with DFS Orders directing it to repair its financial condition, including multiple orders that bar Park from issuing or renewing insurance policies. In addition, Park has failed to submit timely and accurate financial statements in response to DFS directives. Park has committed “systematic misconduct [] over the past decade[,] including misconduct committed during the pendency of this proceeding.” Affirmation of Stephen Doody2 in Opposition to Park’s August 2, 2018 OTSC, dated August 27, 2018 [NYSCEF Doc. No. 106] (the “Doody Affirmation”), 6. On March 19, 2013, a prior Superintendent of Financial Services issued an Order (the “March 2013 Order”) directing Park to cure its insolvency and prohibited Park from issuing any new insurance policies until Park became and remained solvent. Park failed to comply with the March 2013 Order and continued to issue new policies. Doody Affirmation,
8, 41; Exhibit “A” [NYSCEF Doc. No. 107]. On May 26, 2015, the Superintendent issued an Order (the “May 2015 Order”) directing Park to cease writing new insurance policies and conditioning the renewal of existing policies until Park filed satisfactory audited financial statements reflecting a Risk-Based Capital ratio of at least 200 percent. Petition,
