Conn. attorney guilty in life insurance scam
January 6, 2017 by IFAwebnews Staff
A Connecticut attorney, licensed to practice in Connecticut, Pennsylvania, and New Jersey, pleaded guilty to one charge of fraud in connection with a life insurance scheme, officials announced.
David Quatrella, 61, of Trumbull, Conn., became involved in the scheme starting in 2008, according to 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 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.
