PHL Variable Insurance v. Sheldon Hathaway Family Insurance Trust Ex Rel. Hathaway

MORITZ, Circuit Judge.

Sheldon Hathaway became embroiled in a strariger-originated-life-insurance (STO-LI) scheme at the behest of his neighbor, Jay Sullivan. A STOLI scheme typically works something like this: An elderly individual authorizes a speculator to take out a policy on his or her life. The .speculator pays the policy premiums and then profits from its investment — either by collecting the policy payout when the insured dies, or by selling the policy to another speculator before that happens. See Sciarretta v. Lincoln Natl Life Ins. Co., 778 F.3d 1205, 1208 (11th Cir.2015)…