Daniel Carpenter, Life Insurance Scheme, Connecticut 2016
A Simsbury man has been sentenced to prison for his role in a multimillion dollar life insurance scheme.
Daniel Carpenter, 64, of Simsbury, was sentenced to 30 months of imprisonment, followed by three years of supervised release, for defrauding insurance companies into issuing insurance policies on the lives of elderly people for the financial benefit of Carpenter and other investors in the scheme.
On June 9, 2016, Judge Robert N. Chatigny found Carpenter guilty of 57 counts of conspiracy, mail and wire fraud, money laundering and illegal monetary transaction offenses stemming from the scheme, also known as a stranger-originated life insurance scheme.
According to the evidence at trial, Carpenter controlled a series of companies, based in Simsbury and Stamford, that developed the Charter Oak Trust (the “Trust”), an employee welfare benefit plan and trust whose primary objective was to secure insurance policies on the lives of elderly individuals that could be held by Carpenter’s companies as investments, or resold on the life settlement market.
The evidence at trial established that Carpenter, working with insurance agents, caused to be submitted to several insurance providers numerous insurance applications that contained several material misrepresentations, including falsely denying that third-parties were paying the premiums for the insurance, falsely denying discussions about the resale of the policies, falsely inflating the net worth and/or income of the insured, and falsely claiming that the insurance was being purchased for legitimate estate planning-related needs.
Based on the false applications that were submitted to the insurance providers, the Charter Oak Trust procured 84 insurance policies that had a total aggregate death benefit of more than $459 million on the lives of 76 different elderly individuals. In addition, another company controlled by Carpenter received more than $12 million in commissions from the insurance providers.
The trial evidence also showed that one elderly individual died within the first two years of the policy, resulting in a death benefit payout of approximately $1.6 million.
Defendant: Daniel Carpenter
Criminal Charges: Conspiracy, Mail and Wire Fraud, Money Laundering, Illegal Monetary Transaction Offenses
City and State: Simsbury, Connecticut
Date: June 9, 2016
Sentence: 30 months of imprisonment, followed by three years of supervised release
Key Facts
- State: Connecticut
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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