Mississippi Litigation Review & Commentary : Mississippi Personal Injury Lawyer & Attorney : Phillip W. Thomas Law Firm : MS Litigation Review & Commentary

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The Texas Federal Court Judge who held Adley and Sarah Wahab in contempt has entered a final judgment of over $16.5 million against Wahab, W Financial, Michael Wallens, Sr. and Michael Wallens, Jr. Here is the Final Judgment.

Here is a photo of Wahab.

The judgment finds the four defendants jointly and severally liable for $14,506,449 in profits and interest from their improper conduct. In addition, the Court fined each defendant $500,000 in civil penalties.The court gave the defendants ten days to pay the fine and thirty days to pay the principal amount.

I’m not sure what will happen to the Defendants when they do not pay, but I suspect that the judge may hold them in contempt and order them jailed.

Just days before entering the judgment the court entered this order revising its October order holding Adley Wahab in civil contempt for making unauthorized transfers of assets. Wahab got caught moving his assets to off-shore accounts and probably planned to flee the county. The court ordered Wahab to surrender his passport to the SEC. The court issues a warrant for Wahab’s arrest and stated that Wahab “holds the keys to his prison” because he can get out of jail by complying with the court’s order.

I predict that any freedom that Wahab gains will be short lived. He’s going to be hanging out with the likes of Bernie Madoff and Martin Frankel for a long time.  

Finally, here is the text of an email that I received on June 10, 2009 from Andrew T. McKinney, an attorney in Houston, Texas:

Dear Mr. Thomas:  if you had taken the time to investigate, even superficially, your factual assertions and speculations—defamatory assertions and speculations--you would know that Mr. Wahab is not an owner of A&O Life Funds LP or any related or affiliated entity.  Mr. Wahab sold his interest in A&O Life in the late summer of 2007.  Two material points in connection with that sale are: (1) the funds in escrow were audited and verified by the purchaser, prior to sale, and found to be exactly as represented and (2) a subsequent, post-sale audit was conducted and all funds represented to be in place, in fact were in place.  These two facts conclusively absolve Mr. Wahab of any post-sale wrongdoing since he has had no ongoing managerial or other ‘control’ role with A&O Life Funds LP.  You are invited to withdraw any and all comments about Adley Wahab on your website or plan to litigate this matter in Mr. Wahab’s home town off Houston, Texas. 

 

 

Andrew T. McKinney IV

McKinney & Cooper, L.L.P.

Three Riverway, Suite 500

Houston, Texas  77056

Toll Free: 1(866) 928-8215

Telephone:  (713) 623-6868

Facsimile:   (713) 623-8222

e-mail:  mckinney@mckinneycooper.com

I did not withdraw my comments about Wahab and my suspicions about him being a crook have been confirmed.

Mr. McKinney claims to be knowledgeable about Wahab and A&O. A&O investors with questions about their investment should consider contacting Mr. McKinney with their questions.  

Finally, disgruntled A&O investors continue to contact my office with questions about the scandal and the possibility of my firm representing them. I do not represent investors in A&O litigation and am not going to. I covered the A&O scandal on my blog in order to bring exposure to the scandal and provide information to the victims. 

I have repeatedly stated my opinion that if you are a victim who lost money in the scandal, you are going to have to find someone other than Wahab and his co-conspirators to sue. For most people this means suing the person who sold you the investment. If that person is continuing to tell you that this will all work out, then they are lying to you. If you want to recover any money you are going to have to sue that person for selling you an innappropriate investment.

 When began covering A&O on this blog I was afraid that A&O was still preying on its victims by luring in new investors. With state and federal authorities investigating and national media convering the scandal, my coverage of the scandal will continue to be sporadic.