Justice Barbara Kapnick
This action involved a stranger-owned life insurance policy (STOLI). Insurer Principal Life issued a policy for $5 million on Warhit's life. The policy was owned by Warhit's Insurance Trust of which Berck was the trustee. Warhit died within two year's of the issuance of the policy, and Principal performed an investigation into the death claim. Principal determined it should not pay the benefit due to alleged misrepresentations by Berck and Warhit during the application process regarding Warhit's intention to sell the beneficial interest in the trust after issuance of the policy. Berck asserted claims for violation of General Business Law §349, among other things. Defendants M&M Brokerage and Meyer moved for summary judgment in their favor on the claim asserted against them. They argued Berck's §349 claim could only be asserted against Principal and not its then-employee Meyer. Defendants also claimed Berck could not invoke §349 protections as he was not a consumer as contemplated under the statute. The court noted Berck was a "sophisticated speculator" who was far from being a stranger to the type of sophisticated STOLI arrangement here. It concluded Berck was not an ordinary consumer to whom §349 was directed, granting defendants' motion for summary judgment.
