WTC Leaseholder Accused of Hoax

World Trade Center leaseholder Larry Silverstein deliberately underinsured the Twin Towers, then concocted a hoax after Sept. 11 to double his $3.5-billion coverage, an insurer claims in new court papers.

Silverstein contends the destruction of the towers by two hijacked jets constituted separate events for insurance purposes, entitling him to about $7 billion from 22 insurers.

Lead insurer Swiss Reinsurance Co. says in court papers that Silverstein took steps within hours of the attack to double the amount of his claim.

“The documents that have already been produced show that it is Swiss Re, not Silverstein, that is trying to rewrite history,” a Silverstein spokesman said.