Trustree: Wahab Gang Stole Investors' Money--Did Russell Mackert Commit Perjury in A&O Affidavits?
The big news in the A&O debacle last week was this Complaint that the A&O bankruptcy trustee Patrick Collins filed against Adley Abdulwahab, Brent Oncale, Russell Mackert, Christian Allmedinger, Shepard Capital Management (Mackert’s company) and A&O. The Complaint alleges that the defendants stole the A&O investors' money. A while back I asked where did the investors’ money go and stated:
There, as in the bankruptcy proceeding, A&O and Mackert claim that Physician's Trust LLC bought A&O, asked Mackert to manage it and then disappeared. Literally. The supposed owner of A&O paid millions for the company to Adley Wahab and his partners and then disappeared without a trace? And they can't be found? That makes no sense and just defies all credibility. I don't believe it. No one believes it. I suspect that one day the truth will emerge, and I can't wait to hear it.
The Complaint alleges that the sale of A&O was an “illusion” in response to regulatory investigations in multiple states. “The sale was a sham” and Wahab, Oncale and Mackert maintained control over the A&O financial accounts. The Complaint alleges that at least $37 million was transfered to the A&O principals for their personal use. The Complaint seeks the recovery of these funds.
The Complaint refers to the sale of A&O to Physicians Trust and Blue Dymond as the purported sale of the A&O entities. The Complaint does not state whether Physicians Trust and Blue Dymond are legitimate companies separate and apart from Wahab et al. or whether RJ Stephenson is a real person. At this point, however, there is no credible evidence that Stephenson is a real person or that Physicians Trust and Blue Dymond are legitimate.
No observers of the A&O debacle are surprised by these new allegations. But the allegations raise new questions about the veracity of A&O front man Russell Mackert and whether he committed perjury in connection with affidavits that A&O filed in the Colson litigation in Mississippi.
In this affidavit Mackert testified that the A&O principles sold the company to Physicians Trust and Blue Dymond, whose principal was RJ Stephens. According the Mackert, Stephens then disappeared into thin air like Keyser Söze in the movie The Usual Suspects. As pointed out by wikepedia: “the… use of the name in popular culture is a shorthand reference to being fooled by the actual bad guy into believing in a bad guy that doesn't exist.”
According to the trustees’ Complaint, the A&O sale was a sham—and Mackert knew it. If this allegation is true, then Mackert may have committed perjury in his affidavits filed in Mississippi.
Perjury is lying under oath in a judicial proceeding. An affidavit is sworn testimony under oath in a judicial proceeding. Was Mackert’s affidavit perjury? The United States Attorney’s Office for the Southern District of Mississippi may want to know.
Wow. The complaint reads like an outline for a movie script. Ferraris? New houses? Nice.. way to fly under the radar.
What I am most afraid of is that these guys are all going to skip town and move to the Caribbean before any money is recovered or anyone is prosecuted. Guess we'll just have to wait and see.
If fleeing the country were easy, then more criminals would do it. I suspect that these guys have had their passport seized.
I find it very hard to understand why if Texas agencies were fully aware of this fraud since early in 2006, WHY is it 2010 without a FEDERAL indictment-can someone explain? The FBI, the SEC, the IRS, the US Attorney all read this column-please explain your action, I mean, inaction. I strongly feel that the director for the Fort Worth SEC should explain her office's handling of the W Financial when they knew full well about the much larger A&O fraud and without intervention, planned on turning the other way while the receiver absconded with our A&O investor assets. Specifically, there is much more evidence that the WAHAB house was built from A&O funds than any W Financial and the Trustee has traced the Jersey account of Wahab's from A&O accounts. I and others might have been able to prevent further A&O investment had the SEC acted more aggressively on A&O which was 5 to 6 times the size of fraud as the WF.
Rather than a movie, this looks like a FEDERAL indictment-HINT,HINT. The Sacramento SEC went after Secure Investments for only a $25 million fraud. At least the LaMonda brothers didn't screw the investors as bad as these A&O BLANKS. A&O devastated the policies sooooo bad that the majority are unsalvageable. Maybe someone will apply for some stimulus money for us. Maybe the government could go after Consolidated Wealth Management or Consolidated Wealth Holdings or whatever the name is. They like smaller frauds like that. Maybe that's why it took so long going after Madoff, they must not like to pursue frauds over $25 million.
The question that keeps coming to mind for me is really a 2-parter. Who is Jeff Marwil, and why is the "Group of Investors" pushing so hard for his appointment as trustee? Is this just a ploy to drag this process out to infinity? Why is Debra Fritsche pushing this so hard? Trying to read through the court documents on all their objections and issues leads me to believe it will be a very long time before this mess is sorted out, the criminals are prosecuted, and we know if any of our money can be found and returned.
Has anyone heard anything about the status of
Russell Mackert's depostion?
Haven't heard, but if you email Patrick Collins' office through the Lifefundstrustee.com website, you'll get an answer to that. They always call me back the same day when I contact them.
Jeff Marwil has been certified to replace Patrick Collins as trustee in these cases. See the LifeFundsTrustee website for details, and to read the judge's opinion. I'll keep my opinion to myself regarding the Houston law firm involved in this.