$18 Million Dollar Life Insurance Policy Seized

In Arkansas, Layton Stuart, a bankexecutive passed away shortly after being removed from his government career.Now, his family is trying to claim an $18 million dollar life insurance policy.The government is claiming that the money should not be paid out because the$18 million was gained from illegal activity.

Reports from the ArkansasDemocrat-Gazette, indicate that the life insurance company paid almost $18million to the government to take care of a seizure warrant. The U.S. attorneyis attempting to seize all of he forfeited assets that came from criminalactivity. Prosecutors are claiming that Stuart had been using bank funds inmultiple schemes to pay his life insurance payments. The payments on his policywere $22,000 monthly.

The IRS asserted that Stuart was inviolation of an agreement between the bank and he when he used the cashsurrender value of the insurance policy to secure a loan. Under the agreement,the bank had to pay the insurance payments. Stuart died before responding tothe allegations. The family trustee claims that there is no evidence that thepolicy had anything to do with criminal activity. 

See Estate of Ark. Banker Seeks Seized Millions, The State,  Jul. 27, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.