Man sues... says insurance policy value was hyped

Insurance mogul Barry Kaye, who has told Florida Atlantic University he will not fulfill his $16 million pledge to the school, is now facing a federal lawsuit in relation to his once mega-profitable life settlement business.

The lawsuit, filed Tuesday in Ohio, claims that Kaye's Boca Raton firm persuaded an 81-year-old man to purchase a $5 million life insurance policy in 2006 with promises that he later could sell the policy to an investor for a large profit.

After paying more than $322,000 in premiums over two years, plaintiff Louis Levin said his policy was no longer marketable and he was told that a buyer could not be found. During this time, Levin alleges, Kaye received a commission on the policy sold to him...

Palm Beach Post: Man sues Boca Raton's 'You Buy, You Die' guy, says insurance policy value was hyped