What is STOLI?
Stranger-Originated Life Insurance, or STOLI, is an arrangement whereby an investor-speculator, with no insurable interest or direct relationship with an insured, initiates and/or finances a life insurance policy to benefit from the insured's eventual death. Often described as a human-life wager, STOLI schemes are illegal because of the perverse incentive such relationships create: the investor-speculator is directly incentivized to see the insured's early demise.
STOLI schemes take many forms and often involve complex legal structures to mask the scheme's true purpose. STOLI schemes have been identified all over the United States.
If you believe that you or a loved one has been a victim of a STOLI scheme anywhere in the United States, call Marcus & Marcus today.
For a more in-depth discussion of STOLI and how it works, take a look at the following links:
STOLI Explained - Investopedia
Understanding STOLI - American Life Fund
The attorneys at Marcus & Marcus have successfully obtained millions of dollars in judgments for the families of elderly Americans victimized by STOLI schemes throughout the United States. Below are two recent judicial decisions from state courts in Delaware and Florida affirming the right of the families of elderly Americans victimized by STOLI schemes to recover the death benefit received by the investor-owner in connection with the human-life wager perpetrated on their loved ones.
Awarding summary judgment for the family of a senior put through Coventry's STOLI program, awarding the family over $11 million. Estate of Martha Barotz v. Vida Longevity Fund, L.P., C.A. No. N20C-05-144 EMD CCLD, 2022 WL 16833545 (Del. Super. Ct. Nov. 9, 2022).
Click this link to view the decision from the Delaware Superior Court
Awarding summary judgment for the family of a senior put through Life Accumulation Trust's STOLI program, awarding the family over $5 million. Estate of Martha Barotz v. Martha Barotz 2006-1 Insurance Trust, N20C-04-126 EMD CCLD (Del. Super. Ct. Dec. 18, 2023).
Click this link to view the decision from the Delaware Superior Court
Awarding summary judgment for the family of a senior put through Coventry's STOLI program, awarding the family over $10 million. Estate of Marvin Diamond v. Viva Capital 3, L.P., 50-2021-CA-004791-XXXX-MB (Fla. Cir. Ct. Sept. 15, 2023).
Click this link to view the decision from the Circuit Court of Palm Beach County