Citing fraud, insurer balks at payout in murder

July 31, 2010 10:53:49 AM PDT
A life insurance company is balking at paying a $4 million claim in the case of a Long Island motivational speaker accused of arranging his own death.

Principal Life Insurance filed a federal lawsuit Friday in Brooklyn, saying Jeffrey Locker had lied about his income and other things when he bought the policy.

The father of three was stabbed and choked to death last summer in his car in East Harlem.

The suspect in the killing told police Locker paid him to stage the murder as a robbery so his family could collect the insurance.

Locker was heavily in debt at the time of his death. The suspect faces second-degree murder charges and has pleaded not guilty.