An attorney from Trumbull was recently sentenced to three years in federal prison for participating in a life insurance fraud scheme.

The scheme is known as a stranger-originated life insurance (STOLI) scheme.

David Quatrella and others, including insurance brokers based in California, New Jersey and Florida, assisted elderly persons in applying for multimillion dollar life insurance policies. Quatrella and his co-conspirators offered the insured the promise of free life insurance for two years, after which they would attempt to sell the policy and provide a share of the proceeds to the insured. The insured was not obligated to pay anything and was commonly told that the premiums were being borrowed from a third-party source. As part of the scheme, Quatrella and others recruited investors to finance the payment of premiums on the life insurance policies, with the understanding that the investors would earn a profit upon the sale of the policy.

Quatrella and his co-conspirators then submitted applications containing false and misleading information to various life insurance providers, and did not disclose the third-party premium funding arrangements for the policies.

Quatrella personally profited approximately $272,000 as a result of the scheme. He and his co-conspirators attempted to sell the life insurance policies to life settlement investment funds or brokers but, in certain cases, they could not find a buyer and the policies lapsed.

Although the insurance companies were exposed to a total loss of nearly $15 million as a result of this scheme, no death benefits were paid on any of the policies.

Quatrella pleaded guilty to one count of conspiracy to commit wire fraud on Jan. 4, 2017. He also has agreed to forfeit $272,000, and a restitution order will be entered after further court proceedings.

He has also voluntarily surrendered his license to practice. Quatrella, who is released on bond, was ordered to report to prison on July 28.