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Circuit court upholds brokers' convictions for mail and wire fraud in sale of STOLI policies

The defendants participated in an insurance fraud scheme involving stranger-oriented life insurance policies.

By Barry Zalma, Esq., CFE | Updated on April 26, 2016

Life insurance is designed to protect families against the unexpected death of a family member on whom the family relies for its livelihood.

When the AIDS epidemic first struck, young men found they had a short life expectancy. They sold their life insurance policies to obtain cash and allow the purchasers to make money by paying the premiums for only a short period of time because the AIDS victims died quickly. Unfortunately, in the legitimate sale of life policies to provide cash to AIDS victims to pay for their last days on earth criminals saw the purchase of life policies of people who were sure to die quickly as a temptation to defraud insurers for fun and profit.

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