A&O Life Update: Three State Court Lawsuits Against A&O in Texas
Someone emailed to me the Complaints in three lawsuits on file in Harris County Texas against A&O Life and related individuals and entities. You can link to the Complaints in each case below.
1. Mora v. A&O Resources, et al.
2. Boutte v. Peoples. (involving an investment of over $10 million)
3. Hubenak v. Capital One, et al.
Here is the link to the recent Forbes article on the A&O debacle. Forbes estimates the potential investors loss as being in the tens of millions. There have been unconfirmed comments on this blog that the FBI is investigating A&O and its principals.
Forbes describes the allegations of the Hubenak case as follows:
Take the case of Avin Hubenak of Fort Bend County, Texas, who in 2004 transferred $1.4 million, the entire balance of his Chevron retirement funds following a 29-year career at Chevron Corp., to an IRA at Hibernia Bank. At the time, Hubenak's investment consultant at Hibernia was Allmendinger, who suggested an A&O product as a suitable investment.
Allmendinger, who would soon leave the bank to concentrate on A&O full time, represented to Hubenak a guaranteed annual return backed by the Costa Rican bonding firm of 12%, or $2.24 million, by January 2009, according to a lawsuit Hubenak filed in Texas state court in June. Hubenak did not receive any payment in January 2009 and claims to be “the victim of a fraudulent and illegal scheme designed to steal his retirement funds.”
There are many defendants in all three cases. This is important, since it is not likely that investors will be able to recover their money from the A&O entities, which are in bankruptcy, or the A&O principals. Russell Mackert is a defendant in two of the cases and Adley Wahab in one.
