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. The scheme, detailed in the suit filed by the estate of Martha Barotz, was designed to hide the company’s involvement and make the policies appear legitimate.

The case dates back to 2006 when Barotz allowed a company to take out a policy in her name in exchange for a portion of the benefits. This practice, known as stranger-originated life insurance (STOLI), is illegal and involves investors taking out policies in someone else’s name to increase death benefits.

Despite the illegality of STOLI policies, they were popular in the mid-to-late 2000s. The Barotz family has been fighting to void the policy taken out in Martha Barotz’s name for years. After her passing in 2018, the estate successfully won a case ordering a payout of $6.9 million for damages.

The latest complaint alleges that Apollo tried to avoid paying the damages by liquidating shell firms. Apollo denies any wrongdoing, calling the accusations a mischaracterization. The case highlights the dangers of unethical practices targeting vulnerable individuals, such as the elderly, and the importance of holding companies accountable for their actions.