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.

Physicians Speak Out Against Private Equity Ownership in Healthcare Industry

Physicians Speak Out Against Private Equity Takeover of Healthcare Organizations

As three federal agencies delve into the impact of private equity ownership and consolidation on healthcare organizations, physicians are raising their voices in concern. The investigation, led by the US Department of Justice’s Antitrust Division, the Federal Trade Commission (FTC), and the Department of Health and Human Services, aims to understand how private equity investments affect patient care, costs, and competition in the healthcare market.

Dr. Rhonda Wright, a retired physician from Brookhaven, Georgia, expressed her dismay at the damage she witnessed private equity inflict on hospitals and medical practices during her career. She highlighted the forced departure of respected doctors and staff to maximize profits for buyers, leading to deteriorating patient care and higher bills. Dr. Wright’s sentiments echo those of many healthcare professionals who believe that private equity’s influence in medicine must be regulated to protect patient health.

The federal government is actively seeking input from physicians and the public on this issue, with a deadline for public comments set for June 5. A dedicated website, healthycompetition.gov, has been established to facilitate the filing of complaints against healthcare organizations potentially violating antitrust laws.

Dr. Alexandra Nicole Thran, president of the Vermont Chapter of the American College of Emergency Physicians, criticized the private equity business model for linking physician compensation to patient satisfaction and productivity metrics. Other physicians, like Dr. Eric Schwaber from Connecticut, expressed concerns about corporate influence on healthcare decisions and the erosion of physician autonomy.

While some healthcare professionals, like Dr. Reenie Abraham from the University of Texas Southwestern Medical Center, believe that private equity brings operational expertise to improve patient care, others, like Dr. Scott Davis, have raised alarms about the dominance of payers like UnitedHealth Group (UHG) in the healthcare market. UHG’s significant market influence, including its employment of 10% of active US physicians, has raised concerns about the impact of profit-driven decisions on patient care and provider well-being.

The investigation into private equity and consolidation in healthcare is part of the Biden Administration’s efforts to lower medical costs, promote competition, and protect patient interests. The agencies are calling for feedback from all stakeholders in the healthcare market to ensure a comprehensive understanding of the implications of private equity ownership on patient care and healthcare workers.

As the debate on private equity’s role in healthcare intensifies, physicians and policymakers alike are grappling with the complex interplay between profit motives, patient care, and market competition. The outcome of this investigation could have far-reaching implications for the future of healthcare delivery in the United States.