David Quatrella Admits Role in $272K STOLI Scam

Attorney David Quatrella, 61, of Trumbull, Connecticut, admitted in federal court today to orchestrating a years-long stranger-originated life insurance (STOLI) scheme designed to defraud major insurance companies out of multimillion-dollar policies. Quatrella waived indictment and pleaded guilty to one count of conspiracy to commit wire fraud before U.S. District Judge Alvin W. Thompson in Hartford. The scam spanned from June 2008 to January 2016 and netted Quatrella approximately $272,000 in illicit gains.

Working with insurance brokers in California, New Jersey, and Florida, Quatrella exploited elderly applicants by promising them free life insurance coverage for two years—no premiums required. In reality, Quatrella and his co-conspirators set up third-party financing to pay the premiums, deliberately concealing these arrangements from insurers. The elderly individuals were told the payments were borrowed, shielding them from liability while putting their lives at the center of a financial betting game.

The applications submitted to insurers were riddled with false and misleading information. Critical details about external funding and the investors’ profit motives were omitted. These omissions allowed the policies to be approved under false pretenses. Once issued, the policies became financial instruments, not protection for families. The scheme relied on deception at every level—from application to approval.

Quatrella and his network recruited investors to fund the costly premiums, promising substantial returns when the policies were eventually sold to life settlement funds or brokers. The investors weren’t backing life insurance—they were betting on death. The faster the insured died, the higher the return. When policies couldn’t be sold, they simply lapsed, leaving insurers holding the bag and the elderly participants with nothing.

While Quatrella and his co-conspirators earned massive commissions from the fraudulently obtained policies, the fallout was inevitable. The FBI launched a federal investigation that peeled back the layers of financial manipulation. Now, Quatrella faces up to five years in prison. His sentencing is scheduled for April 28, 2017. As part of his plea agreement, he has also agreed to forfeit $272,000—the full amount he profited from the scheme.

The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry and was investigated by the Federal Bureau of Investigation. The U.S. Attorney’s Office for the District of Connecticut, led by Deirdre M. Daly, continues to crack down on complex financial frauds targeting both insurers and vulnerable seniors. This conviction sends a clear message: even lawyers who hide behind legal forms can’t escape federal justice.