US-based insurance company demands return of $12m from Armstrong

Last Updated: Thu, Nov 01, 2012 08:50 hrs

US-based insurance company SCA Promotions has confirmed that it has sent Lance Armstrong a letter demanding the return of 12 million dollars in bonuses and warned that it might take legal action.

SCA attorney Jeff Dorough said the letter not only seeks back the bonus money but also states that it might go to court for legal sanctions and penalties against the disgraced US cyclist, who was stripped of seven Tour de France titles after being convicted of doping.

The potential legal action could come in connection with false testimony given by Armstrong during an arbitration hearing in 2005-2006, Sport 24 reports.

According to the report, Dorough confirmed that SCA was seeking 7.5 million dollars paid out to Armstrong after a 2006 arbitration proceeding, which included a 5 million dollar bonus as well as legal fees and interest.

"Mr Armstrong is no longer the official winner of any Tour de France races and as a result it is inappropriate and improper for him to retain any bonus payments made by SCA," Dorough said.

The International Cycling Union (UCI) backed a US Anti-Doping Agency (USADA) decision to effectively erase Armstrong's cycling record, including the seven Tour de France titles he won from 1999 to 2005, after a lengthy investigation, the report said. (ANI)

More from Sify: