David Quatrella, a 62-year-old attorney from Trumbull, Connecticut, has been sentenced to 36 months in federal prison for participating in a scheme that defrauded insurance companies out of nearly $15 million in life insurance policies. The scheme, known as a stranger-originated life insurance (STOLI) scheme, targeted elderly individuals and promised them free life insurance policies for two years, with the promise of a share of the proceeds after that.
Between June 2008 and January 2016, Quatrella and his co-conspirators, including insurance brokers from California, New Jersey, and Florida, assisted elderly individuals in applying for multimillion-dollar life insurance policies. The policies were then sold to investors, who were promised a profit upon the sale of the policy. However, the insured individuals were not obligated to pay anything and were often told that the premiums were being borrowed from a third-party source.
Quatrella and his co-conspirators submitted false and misleading information to life insurance providers, failing to disclose the third-party premium funding arrangements. As a result, they received large commissions from the providers and Quatrella personally profited approximately $272,000. Despite the insurance companies being exposed to a total loss of nearly $15 million, no death benefits were paid on any of the policies.
Quatrella pleaded guilty to one count of conspiracy to commit wire fraud on January 4, 2017, and has agreed to forfeit $272,000. A restitution order will be entered after further court proceedings. Quatrella has also voluntarily surrendered his law license.
The scheme was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Avi M. Perry. Quatrella was released on bond but was ordered to report to prison on July 28, 2017.
Quatrella’s sentence serves as a reminder of the importance of holding individuals accountable for their actions in the world of finance and insurance. The life insurance industry relies on trust and integrity, and those who seek to exploit this trust for personal gain will be brought to justice.
This case highlights the need for vigilance in the financial sector and the importance of reporting suspicious activity to the authorities. The Federal Bureau of Investigation and other law enforcement agencies will continue to work tirelessly to prevent and investigate financial crimes like this one.
Related Federal Cases
- David Quatrella, STOLI Scheme, CT 2024 · Pennsylvania
- Live Nation, Antitrust Lawsuit, New York NY, 2024 · New York
- Thomas Mitchell Johnson, Africa Trip Scam, California 2024 · New York
- Vaughn Matthews, Drug Trafficking and Gun Possession, FL 2023 · Colorado
- NJ CFO Caught in $60M Kickback Scheme · Washington
Key Facts
- State: Connecticut
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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