Should San Bernardino shooter’s family be allowed to collect insurance money?

The federal government is suing to stop the beneficiaries from collecting more than $250,000 in life insurance money, saying the policies are derived from a terrorist act

Insurance News

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Two life insurance policies issued to San Bernardino shooter Syed Rizwan Farook are at the center of a suit filed this week by the federal government.

In a complaint seeking the seizure of the $275,000 in benefits, the government alleges the proceeds of the policies are derived from a terrorist act and should not be paid to Farook’s family.

“Terrorists must not be permitted to provide for their designated beneficiaries through their crimes,” US Attorney Eileen Decker said in a statement.

“My office intends to explore every legal option available to us to ensure these funds are made available to the victims of this horrific crime. We will continue to use every tool available to seek justice on behalf of the victims of the San Bernardino terrorist attacks.”

Farook and his wife, Tashfeen Malik, were responsible for the deaths of 14 people and the injuries of 22 others when they opened fire at a holiday party December 2.

Authorities say the pair had been planning the attack since 2011, along with a friend, Enrique Marquez Jr. Marquez was indicted in December on charges of conspiring to provide “material support to terrorists, lying about rifle purchases, marriage fraud and lying on a visa application.” He pleaded not guilty and is awaiting trial next year.

During the planning, prosecutors say Farook took out a $25,000 life insurance policy in 2012 and a second one for $250,000 in 2013. For both policies, Farook listed his mother as the beneficiary.
Authorities argue that due to the timing, Farook knew that payout – which would benefit his mother, who had been in an abusive marriage – was imminent.

Under federal law, prosecutors can seize any assets that are “derived from a crime of terrorism against the United States, its citizens or residents, or their property.” In order to seize the money, a federal judge must approve the government’s application.

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