UKnight Interactive sued Knights of Columbus over the alleged business misconduct of the organization's leadership.
The lawsuit, filed in a federal court in Colorado, accuses Knights of Columbus of actuarial fraud regarding the size and demographics of its membership. Through the actuarial fraud, the organization allegedly misrepresented the sustainability of its membership and business model to insurance carriers, credit rating agencies and its own members.
The lawsuit also claims that the Knights of Columbus leadership caused its member councils to upstream millions of dollars in dues for nonexistent members to inflate its claims of a much larger and younger membership base and insurance risk pool.
Through those activities, the Knights of Columbus leadership allegedly engaged in a self-enrichment scheme.
The court ordered the Knights of Columbus to produce documents verifying its membership and demographics, among other details.
List Interactive Ltd., which does business as UKnight Interactive, is a small company that designs web systems. The company has been working with Knights of Columbus for several years. The lawsuit came after Knights of Columbus did not announce an agreement under which UKnight Interactive would have been the designated vendor for the life insurance business of its fraternity of lodges and agents.
Knights of Columbus did not immediately respond to a request for comment.