Bloomberg Law report that Apollo Global Management Inc. has been accused, in a new lawsuit, of betting on the longevity of senior citizens by acquiring illegal life insurance policies and channelling the payouts through shell entities.
The private equity giant reportedly created an intricate network of sham trusts. These were allegedly facilitated by a shadowy affiliate known as Financial Credit Investment. They held a portfolio of stranger-originated life insurance policies valued approximately at $20 billion.
Taking out a life insurance policy on an unfamiliar person is considered “anathema to hundreds of years of public policy” and contravenes the Delaware Constitution, as claimed by the lawsuit. This accusation, therefore, marks Apollo as perpetuating a widespread fraudulent practice that treats human lives as mere variables in a dubious betting scheme.
The case has been filed with the Delaware Chancery Court under the docket number No. 2024-0447. This case could have significant implications for Apollo Global Management, and it undoubtedly warrants close monitoring.