Life settlement fraud is described in the following manner under Article 176.40 New York Penal Law:
“A fraudulent life settlement act is committed by any person who, knowingly and with intent to defraud, presents, causes to be presented, or prepares with knowledge or belief that it will be presented to, or by, a life settlement provider, life settlement broker, life settlement intermediary, or any agent thereof, or to any owner any written statement or other physical evidence as part of, or in support of, an application for a life settlement contract, a claim for payment or other benefit under a life settlement contract, which the person knows to: (1) contain materially false information concerning any material fact thereto; or (2) conceal, for the purpose of misleading, information concerning any fact material thereto.”
In essence, when you engage in life settlement fraud you are misrepresenting information regarding or connected to an insurance policy in an attempt to defraud a person or company of property. The act itself, which is life settlement fraud in the fifth degree, is a class A misdemeanor, while life settlement fraud in the fourth degree involves property in excess of twenty-five thousand dollars. Life settlement fraud in the fourth degree is a class E felony.
Each degree of life settlement fraud is differentiated by the value of the property involved. Life settlement fraud in the third degree, a class D felony, pertains to property in excess of fifty thousand dollars, and life settlement fraud in the second degree is for property worth more than one hundred thousand dollars. It is a class C felony. If the property involved is worth over one million dollars, the perpetrator has committed life settlement fraud in the first degree, which is a class B felony. Aggravated life settlement fraud, a class D felony, occurs when someone who has been convicted of the crime within the past five years has once again committed the act.