December 4, 2018

Simsbury life-policy fraudster gets 30 months in prison

A Simsbury man convicted of scamming the elderly on life insurance will spend 30 months in federal prison for his theft, prosecutors say.

Daniel Carpenter, 64, was sentenced Monday in Hartford federal court on his June 2016 conviction on 57 counts of conspiracy, mail and wire fraud, money laundering and illegal monetary transactions stemming from the scan, the Connecticut U.S. Attorney's Office said.

Carpenter must report to federal prison on March 4, 2019. A restitution order for him to repay some or all of what he stole is pending, authorities said.

According to investigators, Carpenter, using a series of companies he controlled, devised and promoted the Charter Oak Trust. The trust's business model was procuring life policies on elderly individuals that could be later resold to investors via the life settlement market, authorities said.

At one point, Charter Oak Trust claimed life policies with a face value of $459 million on the lives of 76 straw insureds, authorities said. Meantime, another firm Carpenter controlled drew more than $12 million in commissions bilked insurers.

However, trial evidence pointed to Carpenter and his investors using "straw insureds'' to obtain life policies that he and his agents tried selling on the life insurance after-market. They agreed to split proceeds from the sale with straw insureds, investigators said.

Investigators later found that none of the straw insureds ever paid any premiums on the bogus policies, rather third parties bore the premium costs. Taken together, the actions of Carpenter and associates was insurance fraud, prosecutors said.

Carpenter previously was convicted in Massachusetts in an unrelated business matter and was sentenced in Feb. 2014 to served three years in state prison, authorities said.

The case was prosecuted by Assistant U.S. Attorneys David E. Novick and Neeraj N. Patel.

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