Apollo Global Management Inc. bet on the longevity of senior citizens by acquiring illegal life insurance policies and funneling the payouts through shell entities, according to a new lawsuit.
The private equity giant allegedly set up a web of sham trusts—using a secretive affiliate called Financial Credit Investment—to hold a portfolio of stranger-originated life insurance policies worth roughly $20 billion. Taking out life insurance on a stranger is “anathema to hundreds of years of public policy” and a violation of the Delaware Constitution, the suit says.