Fairfield County man charged after declaring bankruptcy despite paying life insurance
A Bridgeport man could face five years in prison after failing to mention under oath that he was the beneficiary of a $100,000 life insurance policy for his mother, who died nine days after she filed for bankruptcy.
Anthony Faustini, 57, had a debt of $86,862 according to the Connecticut U.S. Attorney’s Office. He would have filed for bankruptcy on March 12, 2018; nine days later, his mother died.
On April 18 of that year, Faustini testified in bankruptcy court. When specifically asked if “someone died and left you money,” Faustini answered “no” under oath, and he did not list the policy in a document detailing all the objects of value in his possession.
On June 21, 2018, the day after the Connecticut bankruptcy court exonerated Faustini of all debts, he contacted the life insurance company to inquire about the status of his claim payment. On June 26, he received a check for $100,246 from the company, according to U.S. Attorney John Durham’s office.
The U.S. District Administrator’s office in Connecticut was reportedly notified of the life insurance payout and launched a “Rule 2004” review of Faustini on June 5, 2019.
Faustini reportedly denied knowing about the life insurance policy when he filed for bankruptcy and did not know how the insurance company knew where to send the check.
In addition to the jail sentence, Faustin will pay $64,955 in restitution (the unspent portion of the $100,000 life insurance policy was withdrawn from Faustini after an investigation was completed). He will be sentenced in February 2021.
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