Colson Update: Case Status and A&O Life Not Paying Investors
After Judge Ozerden dismissed the two pending Colson cases because the federal court no longer had jurisdiction, the cases were re-filed or transferred to the Harrison County Chancery Court. All the local chancery court judges recused themselves from the case, which is common when a lawyer is a party in the case. The Mississippi Supreme Court appointed Judge Frank McKenzie of Laurel to preside over the case. It's my understanding that not much has happened since the case moved to state court.
One of the most interesting aspects of the Colson litigation was the emergence of the A&O Life companies, their manager, Russell Mackert and Adley Wahab. A&O claimed some of the Colson funds interpleaded in the Wachovia interpleader action. A&O is a controversial company that I previously characterized as "shady" in my opinion. Adley Wahab is a defendant in a civil lawsuit filed by the SEC in Texas. The lawsuit raises serious allegations against Wahab and his associates. Here is a brief filed by the SEC that gives a flavor of the SEC's allegations. The SEC alleges that in the summer of 2007 Wahab became aware of the SEC investigation and began transferring millions of dollars in assests with the assistance of Mackert. During this same period, Wahab sold A&O to Blue Dymond, which was not mentioned in the SEC brief. According to affidavits filed by Mackert, who is now managing A&O, he does not know who owns Blue Dymond. Hopefully, the SEC will look into this at some point.
I have also been in communication with A&O investors in Texas and New York. According to some of these investors, A&O is not re-paying its investors as promised. It's hard to reconcile the SEC's allegations with a legitimate company that pays investors as represented. I encourage concerned A&O investors to contact an attorney to discuss their legal rights. I believe that there may be a litigation path that would allow A&O investors to recoup their money. If there are any attorneys who are pursuing litigation against A&O or its principals who would like me to publish their contact information for investors to contact, I would be happy to do so.
The A&O ran a ponzi scheme like Madoff. My family has been victimized by their connyving practice. We contacted and asked to return the money and now feel helpless. Mr. Mackert first blamed on the bond company (Provient Capital Indemnity) that they are simply not paying off the investors. Then admitted that he does not have the money to pay for premium at this time. Mr. Mackert changed his office and phone#s without notifying us. When we requested for the other investors contact information, he said would talk to a lawyer first. This smells bad and I would ask other investors to share what they are going to do to recover the money from A&O. I commend Philip Thomas for exposing the real A&O and also will request to provide any names for attornies so that we can get some legal advice.
I would also like to get in touch with other investors. They haven't even posted your name on this site though so they don't want us to meet either. My phone is 817-427-0852 and live in the Fort Worth, Texas area... e-mail brian.chitty@sbcglobal.net
Brian Chitty
My wife and I were also sold these A&O bonds in Dec. of 07 through a financial planner. I have no doubt that these guys are crooked and would love to go after everyone involved to try and recoup some of our money. I can be reached at 281-821-4200.
I saw an ad in the Dallas Morning News for Colonial First Financial Services. My father had just passed away and left me $80,000. I told Lee Gonzales that I wanted to invest money in a 5 year CD so my money would be safe. I told them I didn not want an investment with any risk of losing the original investment. They sold me on the A&O deal and now I'm being told there is a bankruptcy and I'll need to pay a lawyer to TRY to get some of my money back. I called the number on the business card and they answered RED ROCK CAPITAL. They have the same number and the same suite 600 but they say they don't know Colonial First. Eventually, someone told me they sublet space to Colonial First and they left no forwarding address.