Saturday, January 7, 2017

Life Insurance Scam

Image result for life insurance scamA Trumbull attorney pleaded guilty to one charge of fraud in connection with a life insurance scheme, officials announced Wednesday. David Quatrella, 61, became involved in the scheme starting in 2008, according a statement released by the U.S. District Attorney of Connecticut.
“(He) and his co-conspirators offered the insureds the promise of free life insurance for two years, after which (they would attempt to sell the policy and provide a share of the proceeds,” U.S. Attorney for Connecticut Deirdre M. Daly said in a release.
The elderly people were not required to pay anything for the policies, and were also promised a portion of the profits. It’s unclear how much money was involved in the entire scheme.
The goal was to flip the policies, but many of the them lapsed without buyers. At the heart of the fraud was the submission of paperwork that had false information and omitted the details about the third-party funding. Insurance companies shelled out hundreds of thousands of dollars in commissions, a DOJ spokesman confirmed.

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