Skip to main content
Press Release

Attorney Admits Role in Life Insurance Scheme

For Immediate Release
U.S. Attorney's Office, District of Connecticut

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID QUATRELLA, 61, of Trumbull, waived his right to be indicted and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to a conspiracy charge stemming from a scheme to defraud insurance companies into issuing insurance policies on the lives of elderly people for the benefit of QUATRELLA and other investors, also known as a stranger-originated life insurance (“STOLI”) scheme.

According to court documents and statement made in court, between approximately June 2008 and January 2016, QUATRELLA and others, including insurance brokers based in California, New Jersey and Florida, assisted elderly persons in applying for multimillion dollar life insurance policies.  QUATRELLA, who is an attorney, and his co-conspirators offered the insureds the promise of free life insurance for two years, after which QUATRELLA and his co-conspirators would attempt to sell the policy and provide a share of the proceeds to the insured.  The insured was not obligated to pay anything and was commonly told that the premiums were being borrowed from a third-party source.  As part of the scheme, QUATRELLA and others recruited investors to finance the payment of premiums on the life insurance policies, with the understanding that the investors would earn a profit upon the sale of the policy.

QUATRELLA and his co-conspirators then caused to be submitted to various life insurance providers applications containing false and misleading information, and which failed to disclose the third-party premium funding arrangements for the policies.

QUATRELLA and his co-conspirators received large commissions from the providers as a result of the issuance of insurance policies on the lives of the insureds, and QUATRELLA personally profited approximately $272,000 as a result of the scheme.  QUATRELLA and his co-conspirators attempted to sell the life insurance policies to life settlement investment funds or brokers but, in certain cases, they could not find a buyer and the policies lapsed.

QUATRELLA pleaded guilty to one count of conspiracy to commit wire fraud.  Judge Thompson scheduled sentencing for April 28, 2017, at which time, QUATRELLA faces a maximum term of imprisonment of five years.  QUATRELLA also has agreed to forfeit $272,000.

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

Updated January 4, 2017