A&O Resource Management Ltd ‘s co-founder and part-owner were sentenced this past week in federal court for their roles in a $100 million life-settlement fraud scheme.
Part-owner, Adley Abdulwahab (pictured below), was sentenced to 60 years while co-founder, Christian Allmendinger got a 45 year sentence.
Apparently, the two men took place in selling “bonded life settlements” which guaranteed 10 to 20 percent returns to investors. What they actually did with investor money was splurge on personal expenses like multimillion-dollar homes, luxury cars and a 15-carat diamond ring.
Really? Is 15 carats really necessary?”
Last year they were both charged with an 18 count indictment alleging conspiracy, mail fraud, securities fraud and money laundering. More than 800 investors in the United States and Canada were victimized.
Co-founder, Allmendinger, was found guilty on seven counts while part-owner, Abdulwahab, was convicted of all 18.
Money from investors was used by A&O in 37 states to invest in life insurance policies. A&O bought bonds that never delivered promised returns. The insured would get cash while investors would pay the premiums to maintain policies and collect the death benefit when the insured dies. Apparently there were not enough bonds or underlying life insurance policies to pay investors off.
“The victims of A&O’s scam were looking for a conservative investment, and they were manipulated into believing A&O was a safe, secure, no-risk investment,” U.S. Attorney Neil MacBride in Alexandria, Virginia, said in the statement. “It was all a big, fat lie; A&O was a sham, a financial house of cards waiting to collapse.” – Source.
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