Lawsuit Alleges Apollo’s Unlawful Scheme Betting on Senior Citizens’ Deaths
A lawsuit filed in Delaware’s Chancery Court has accused Apollo Global Management Inc. of engaging in a scheme where they acquired illegal life insurance policies on senior citizens, betting on their deaths for profit.
The lawsuit, filed on April 26 by the estate of Martha Barotz, alleges that Apollo utilized a complex network of shell entities, including a secretive affiliate named Financial Credit Investment (FCI), to hold a portfolio of stranger-originated life insurance policies valued at approximately $20 billion.
“Apollo has been carrying out a widespread fraudulent human life wagering conspiracy designed to not only hide its involvement, but to create the false appearance that the policies it owns are somehow legitimate,” the complaint read. “Worse still, when Apollo senses a claim is going to be brought, it attempts to dissolve its shell entities to give itself yet another layer of protection.”
The suit said that stranger-originated life insurance policies, where individuals take out insurance policies on the lives of strangers, are deemed contrary to public policy and are considered illegal under the Delaware Constitution. The lawsuit claims that Apollo not only orchestrated this fraudulent scheme but also attempted to conceal its involvement by dissolving shell entities when facing potential claims.
The lawsuit, initiated by Martha Barotz’s estate and filed on April 26 in Delaware’s Chancery Court, revolves around a policy that purportedly paid out $5 million upon her death in 2018. This legal action originates from prior litigation between Barotz’s estate and entities associated with Apollo, following the estate’s efforts to recover a nearly $7 million judgment it had been awarded.
Reportedly, the policy was established in 2006 when Barotz, then in her 70s, permitted Life Accumulation Trust III (LATIII) to secure it, receiving payment equal to 3% of the eventual death benefit. The lawsuit contends that stranger-originated policies like this one often become part of larger, obscured portfolios, shielding crucial details from those whose lives they affect.
“In this way, the senior citizens have no idea who owns a policy on their life, and who wants them dead,” the suit said. “This is precisely what happened with the policy here.”
Allegedly, despite the policy being transferred from LATIII to FCI in 2011, Barotz’s estate only became aware of this after her passing. It asserts that it took years to ascertain that FCI was controlled by Apollo, with this information only coming to light roughly a month ago.
During previous legal proceedings in both New York and Delaware, the trusts purportedly reassured of their ability to meet any adverse court rulings. Meanwhile, Apollo, as per the latest lawsuit, purportedly engaged in efforts to obscure its role and orchestrated deceptive transfers to engineer strategic insolvencies.
The complaint alleges that the asset manager deliberately chose to underfund various aspects of the operation, intending to deprive potentially liable entities of financial resources and avoid accountability. It demands an order holding Apollo directly responsible for the judgment against the trusts due to its purported misuse of corporate structures.
Additionally, the lawsuit takes aim at affiliates of Wells Fargo Bank NA and Wilmington Savings Fund Society FSB, citing their involvement in the administrative aspects of the FCI trusts. Allegedly, they played a role in concealing the scheme from both the insurers who issued the Barotz policy and the estate itself.
Despite requests for comment, Apollo, Wells Fargo, and Wilmington Savings have not yet responded to the allegations.
Information for this briefing was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
Slowly we turn
Step by step
Inch by Inch
Justice. For the people harmed. And together ❤️ 💕 we keep Niagara falls ,etcetera, etc water Agua life
clean for at least
The 7 generations to come
Good day