The Minnesota Department of Commerce has suspended the insurance license of a life insurance agent it alleges used fraudulent means to purchase 44 life insurance policies for one man totaling $127 million.

The department suspended the license of Michael Antonello of New Brighton, Minn., charging him with insurance fraud and forgery. The department also suspended the agency insurance license of Wealth Management Advisors of Minneapolis, where Antonello is chairman.

In a civil suit, the department alleges that Antonello secured 44 life insurance policies from October 1999 to December 2004 on the life of John Paulson.

In order to secure that level of insurance on one person, the department said Antonello allegedly misrepresented to insurance companies the total amount of coverage already in force for Paulson and also incorrectly indicated on several applications that policies already in force for Paulson would be replaced by newer ones.

Antonello also received large commissions from the sale of these polices and profited by selling each of the policies to investors in Stranger Originated Life Insurance (STOLI)  policies after the two-year incontestability period, according to the department.

In addition to the Paulson case, commerce investigators said they have details on three other cases involving multiple life insurance policies and allegations of fraud perpetrated by Antonello. Those cases involve the alleged fraudulent securing of more than $71 million of coverage for three of his clients.

Glenn Wilson, commissioner of the Minnesota Department of Commerce, called Antonello’s case “another unfortunate example of fraudulent behavior associated with large sums of money.”

“Stranger originated life insurance policies are associated with this type of fraud and consumers end up paying for it through higher premiums,” Wilson said in a statement. “As Minnesota’s insurance regulator, we will crack down on any illegal activity that hurts consumers and the marketplace.”

The department added that several insurance companies have sued to rescind the policies and recover commissions received by Antonello.

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