Apollo Global Management Accused of Fraudulent Human Life Wagering Conspiracy

The equity firm Apollo Global Management Inc is facing a new lawsuit in Delaware, accused of engaging in a fraudulent human life wagering conspiracy. The lawsuit alleges that the company took out life insurance policies against the elderly in hopes of profiting from their deaths, all while hiding their involvement in the scheme.

The case revolves around the late Martha Barotz, who unknowingly signed away the benefits of a life insurance policy to strangers in exchange for a small sum of money. This practice, known as stranger-originated life insurance (STOLI), is illegal and preys on vulnerable individuals, particularly the elderly.

Despite the illegality of STOLI policies, they were popular in the mid-to-late 2000s, with companies finding ways to circumvent the laws banning them. In the Barotz case, her policy was eventually sold to a fund controlled by Apollo, leading to a legal battle that resulted in a $6.9 million payout for damages to her estate.

The latest complaint alleges that Apollo attempted to avoid paying the damages by liquidating shell firms that would make the payouts, a move that the estate claims is an attempt to evade the court’s judgment. Apollo has denied any wrongdoing, but the judge’s ruling in favor of the estate stands.

This case sheds light on the unethical and predatory practices of some financial firms, highlighting the need for stronger regulations to protect vulnerable individuals from exploitation. The outcome of this lawsuit will have far-reaching implications for the insurance industry and could set a precedent for holding companies accountable for their actions.