State Announces STOLI Action

STOLI policies are bought solely with the intent of selling the policies in the secondary market as soon as possible. Often, their purchase is financed by investors, who take over the premium payments until the insured dies.

Some insurance companies have sued Antonello to cancel policies he sold and to require him to return commissions earned on the policies' sale, the Minnesota department says.

In another case, the department says, Antonello received policies insuring the life of Marietta Campbell from 5 different carriers. The total value of the death benefits was $14 million. Antonello had Campbell sign application forms from 5 life insurance companies and return them to him otherwise blank, the Minnesota department alleges.

After Campbell died in 2006, Antonello forged her signature on benefit forms, the department alleges. It says the case is the subject of lawsuits against Antonello by the insurance companies involved.

Antonello denies the charges. He maintains that none of the policies in question were purchased with the intention of selling them. He acknowledges, however, that "the settlement market was known to many clients" at the time they purchased their policies.

Moreover, Antonello says, he did not ask Marietta Campbell to sign blank insurance forms. He also denies forging any documents. He acknowledges that he did have a signed beneficiary form for Campbell on hand when she died.

"After her death, and with the full knowledge of the insurance company, the form was submitted so the death benefit would be paid in a tax-effective manner," he says.

Antonello acknowledges changing the date on a form but says he did so at the direction of the insurer.