A&O Life Update: Mackert and Bromseth Plead Guilty and are Cooperating with the Government
A reader posted a comment today saying to look at the A&O bankruptcy trustee's website. Under recent developments the cite reports that the government has seized personal assets belonging to Abdulwahab, Oncale, White and other defendants:
The Bankruptcy Trustee further understands that (1) defendants Allmendinger, Abdulwahab and White were initially taken into custody, although one or more of the foregoing may have been released pending arraignment and (2) the United States Attorney has seized personal property of multiple of the defendants to secure monetary damages that may be awarded in the future and is seeking to hold such property pending resolution of the criminal counts.
More significant are links to guilty pleas by Russell Mackert and Tomme Bromseth. Mackert pleaded guilty to conspiracy to commit mail fraud and cash smuggling. Bromseth pleaded guilty to mail fraud. They could get up to 20 years in prison, but the government is asking for a downward departure because they are cooperating with the government.
As part of their plea deals Mackert and Bromseth agreed to fully cooperate with the government. The short answer for what that means is that it means that Wahab and the rest are going down. Mackert knows where the proverbial bodies are buried and those guys don't have a prayer of gaining acquittals with Mackert cooperating.
It also means that Mackert committed perjury in this affidavit that he filed in federal court in Mississippi when he was chasing A&O money in the Colson litigation. I raised this issue in January in this post. RJ Stephens did indeed turn out to be just as fictitious as Keyser Soze in the Usual Suspects.
Without question, Mackert could still be prosecuted for perjury in Mississippi. But I doubt he will be.
Trustee, it’s clear that with the US Attorney filings, that NOW is the time to act.
1. Let’s get Mackert’s 2004 exam BEFORE he goes to jail. WE (you) can get the best possible information at this time.
2. Let’s get Oncale’s 2004 exam BEFORE he goes to jail. He can help lead us to the several law firms. He can tell us about:
a. Spaldings and their Bayou City Escrow, Inc.
b. Glaw, Lonergen, and O’Neill who provided the so called audits to reassure defrauded investors.
c. The Long brothers who allowed their Entrust company to house these fraudulent investments.
d. The Entrust in Lake Mary, Florida.
It’s possible we could recover from some law firms and prevent harm. Do you agree?
I can't wait to hear how Entrust was involved in all this, i.e., their ownership and connections to the indicted ones.
On the life funds web site the plea agreements of Mackert and Bromseth are listed but where is Oncale's? Where can I go to see that? Oncale's property should have been taken as well.
Where did the money go from the Ranch Oncale just sold? Why is David White who was only there for a few months listed when 'O'thers were really involved more?
Why does it seem like Oncale is getting off so easy, when he orchestrated everything, and White is getting the book thrown at him, when he was only there 6 months and did not have the lavish lifestyle of the others?
There were over 700 investors. Let’s say that since some investors were screwed more than once. That gives us roughly 1000 cases of mail fraud that each draws a 20 year jail sentence. By my math that suggest that some of these characters “potentially” could be facing 20,000 year sentencing for just the mail fraud discounting any other money laundering charges. Now, it would be quite difficult to have criminals plea bargain if the best they could get is 1,000 years in jail. Remember these charges are based only on the criminal activity that occurred in Virginia. Mr. Oncale took the deal that was offered. I see a big benefit to bring this FRAUD to a close. Mr. Allmendinger RESOLD some of the policies and should eat the sentence he deserves.. Mr. White is, in my opinion, just as guilty and deserves a few thousand year sentence but what’s the point.
As I have said before, the problem this creates is that with only one salesperson, Tomme Bromseth, having to pay the price for his CRIMINAL activity when there are so many other Bromseths out there who should be similarly charged, sends the wrong message. This suggests that only one of 200 agents is not a bad percentage (0.5%) chance of getting caught. I still suggest that the FEDS could probably easily have most of the sales agents plea bargain for a 10 or 15 year sentence- that would be reasonable.
This reminds me of the “friend” of the W Financial Receiver, who in his posting, suggested Wahab was being screwed. Is there any Real Investor who feels that way NOW?
Sandy,
The Trustee and the FEDS need to investigate conspiring companies that are self-directed funds like Entrust. Although Entrust THINKS it was “of the hook” by having investors sign waivers as part of the DEFRAUDING documents, I have the opinion that they are just as guilty as the A&O sales agents. How could Entrust be paid directly from a LIFE SETTLEMENT company to house these FRAUDULENT investments when even the Long brother stated this type of investment places investors in jeopardy as a prohibited use of retirement funds. (Retirement funds are not suppose to invest in life insurance products.) Whether or not Entrust produces a contract with A&O, would be very interesting to review, but not required, since Entrust accepted direct payment and therefore, essentially sanctioned the A&O investment. How can they claim, “We didn’t know!” The Entrust managers are suppose to be the “experts.” Entrust sent statements to A&O for collection of their fees on a quarterly basis.
We also received bills for fees from Entrust, but of course we have ignored these since the case broke. I want the bankruptcy cases finished so we can proceed against the company our broker was working for when he sold us this crap. He did it without their knowledge, but that doesn't let them off the hook. Going after the individual agent is pointless (blood out of a turnip, you know). It would be interesting to know if Entrust has some liability as well...
Having just come back from vacation I can't tell you how pleased I was to hear about these indictments. It feels like Christmas came early this year. I was beginning to lose hope that anything was going to happen and the guys were going to skate from any sort of justice.
Mr. Thomas, in your professional opinion what sort of prison time do you foresee these individuals doing? I agree with Case's comment above that Oncale looks like he is getting a pretty sweet deal from the government for cooperating considering he was one of the founders of the company and was responsible for just as much of the fraud perpetrated as Allmendinger and Wahab were. I guess he worked the system to his advantage and threw his colleagues under the proverbial bus. Having known him personally I can't say this is shocking in the least.
Criminal law is not my forte, so I don't know about the sentences. Federal court white collar sentences seem all over the board to me. I've seen people get 25 years for mortgage fraud where I thought they would get 5. I've seen people get 8 for crimes where I thought they would get 25. The amount of money involved is a factor, which suggests to me that the ring leaders are looking at significant time (over 15 years), but it is not a very educated guess.
The bigger question should be even if Oncale plead out and will receive a smaller jail sentence will he be allowed to keep any of the money he has taken? Why has the government not seized any of his assets? Frozen his accounts?
Information we received in the letter from the Virginia U.S. Attorney indicates that the assets of all these people have been seized in anticipation of making at least partial restitution to the victims. Everyone who is a victim in this needs to write the prosecutors on these cases to make our feelings known. Maybe we can influence the sentencing phase, even if they do plead guilty.
I highly doubt he will keep any of the money, unless he buried some in the backyard. If I am reading these indictments correctly these guys have to come up with $103 Million. I would assume most of his assets will have to be sold to cover that. I guess Oncale's cooperation and him giving the Feds an itemised list of purchases made by his partners kept him from having anything seized, but he still has to come up with the cash somehow. I'm looking forward to seeing how this all unfolds.
I highly doubt there's any money left to be recovered. I'd be willing to bet these guys spent the money. I can't imagine they'd be sitting on it, unless it's stashed overseas somewhere. I still believe our best chance at any recovery lies in going after the firms who employed the sales agents. Time will tell.
Is Brent going to walk away with no jail time? I think he was smart and cut a deal early
Thoughts?
I have not seen any further postings on the Trustee website of any PCI payments since the late payment in August of the June and July payments. I hope that the indictments and plea agreements don't influence PCI to stop further payments.
Doug - That would be a total injustice. I hope the government didn't make that deal. He started the company with Allmendinger. If he only gets a slap on the wrist while the others serve time I will be very disappointed in the justice system.
Anyone hear anything about when the arraignment is?
James, if you're an investor in this, you should have received a letter from the Eastern Virginia U.S. Attorney's office with instructions on how to log into their system so you can stay informed on the criminal cases. Once you log in, you can download copies of all case documents, and they will email you with updates.
Well, it was totally predictable, but it looks like the lawyers are getting paid first. Has anyone else received their notice of the hearing before the bankruptcy judge regarding the payment of the attorneys' fees? I know they don't work for free, but it seems wrong that they're getting the lions share of the entities' assets before the investors ever see a nickel.
When is there going to be more news on this case?
The only news we have gotten is on the trustee's website. I don't think much is happening right now on that front, other than the scheduled hearings on the compensation to the attorneys. You can always write Garden City Group to get a personal update; they're usually good about responding.
I see that Brent Oncale's $2 million home in Houston (9125 Chatsworth) was sold in early July per Harris County Appraisal District. The new owner is listed as Superior Vehicle Leasing Co. Inc. The State of Texas has that company registered to a Michael G. Brown who is a very interesting character, to say the least (Houston Chronicle 2001 and 2002 stories - google "Darlina Brown").
I wrote today and asked what will be left after the attorneys get paid, and what the current status of the remaining policies is. I'll post the response when I receive it.
Does anyone know if separate charges will be filed in other states similar to indictments in Virginia? Being that Christian Allmendinger, Brent Oncale, Adley Abdulwahab, Russell Mackert and David White all live in Houston area will/can they be brought up on additional charges in Texas and other states or is it just solely Virginia because it is a federal criminal investigation? Also, I noticed there are some records of transactions in Canada, will/can this become an "international" case as well?
If anyone is interested, Oncale's plea agreement is viewable and online at the A&O Trustee's website
Looks like things are moving along on the bankruptcy case as well as the criminal case. See www.lifefundstrustee.com for the latest there. There are criminal hearings this month too, according to the DOJ.
Does anyone think Brent Oncale will serve time? Or is he in good shape with his plea?
I agree. It is near criminal that Oncale has plea bargained for 2 five year sentences. They had better be consecutive and not concurrent. He better not get any time reduced for aiding in the prosecution of the other “alleged” felons.
Because of this 5 month delay (plus all the time it took to negotiate a plea bargain), if the US Attorney doesn’t have every conceivable recorded confession of these “alleged” felons, then I think we all need a complete explanation. I'd like to hear some of the better parts of those tapes. Why did it take 5 months from the time of Oncale’s plea agreement till the time the final arrests were made? Why did the US Attorney allow Oncale to spend our money for those 5 months? Why was our (Oncale’s) house sold as reported by another blogger? Why were the other “alleged” felons allowed to continue spending our money for those 5 months? If using our investments was part of that plea agreement, then I believe someone owes us some money! Please, let us know.
again the biggest question has to be how is the government allowing oncale to keep all the money he has stolen from us.. if as reported on this site he has sold his house, ranch, cars, he has to be hiding cash everywhere. the government cannot allow him to not have to serve a financial penalty. he has had no financial leash for the past several months and obv does not fear the government.. something isnt right.. we need to make calls to the government. this cannot be.
I'm not an attorney, but I got the impression from reading the Plea Agreement under "Payment of Monetary Penalties" and "Restitution" that Oncale will have to come up with a portion of the 100 million, which is more than likely the reason he is liquidating. Also, it would be really dumb and not very easy for him to try and "hide cash" because based on the plea if he is caught withholding anything then the agreement is voided and he would be prosecuted on all counts.
Mr Thomas~ I realize criminal law isn't your forte but what do YOU think about all this? How can the Feds look at Oncale's crimes at the same punishment level they impose on DVD piracy? 5 years of jail time. It's a joke.
Jim T mentioned the Harris County Appraisal District website ( http://www.hcad.org ) and I looked up Brent Oncale 2 million dollar home listed on Chatsworth. Interestingly enough, there is NO public record on the price of the sale in July 2010. It comes up as $0 . Another interesting find is that if you Google the name Brent Oncale you can see he is quite the socialite here in Houston. After seeing how he spent all our money, his family is featured in multiple socialite magazines and newspapers. I took the liberty of looking up his wife's name (Kelley Oncale) which matches the name on the original bill of sale of A&O. I went back to the hcad site and found that apparently she, solely, purchased a home for $545K in August 2010. How is this possible? How would they have that kind of money that is separate from the funds they siphoned from us?
I read in one of the indictments that Mackert's bulk smuggling cash felony charge was due to taking 5 million to Oncale's off shore bank account in the Federation of St Kitts and Nevis. Where is that 5 million? Where is the money (I would assume 2 million) from the sale of his home?
From what I read on the other posts and newspaper articles, he lived large so why hasn't his name shown up in all the articles as a key player in all this debauchery? Why hasn't he been stripped of his belongings? "To concerned from Sept 24th" has it right, the feds should excavate all Oncale's properties and everyone who he is close to. Oncale along with EVERYONE ELSE INVOLVED deserves to spend the rest of their life in jail to think about the heartache and grief they have caused all of us. Oncale is a thief, crook and liar. Plea or no plea he needs to be made an example of.
Joey,
I share your anger at the apparent injustice of all of this. First of all, Texas is a non-disclosure state, i.e., sales prices of sold properties is not public information, as it is proprietary information not published by the local MLS entities. I'm not sure if the $545K sales price you mentioned by Kelly Oncale is accurate, or if that's the amount mentioned in the deed records. Texas laws (homestead in particular) protect certain assets of everyone, including personal residence, autos, etc., so some of his possessions are untouchable. And his wife probably purchased that latest home as separate property. Where she got the money for it could affect her right to keep it however, and that's up to the feds to determine. We have to give the system time to work. We also have the right to have input on these cases, via the DOJ attorneys.
I honestly believe that Mr. Oncale will be allowed to keep much of what he has taken. At this point I dont even think that if we all were to call the justice department that anything can be done. In texas, as i understand it, if the money used to purahase a home were ill gotten, the house can be seized, even if its a homestead. I hate to say this, but it looks like Mr. Oncale is going to come out of this with little or no jail time, and plenty of our money to keep himself living well for the remainder of his days. Perhaps with enough encouragement, Texas will decide to prosecute him over again.
I predict Brent will not serve one day in jail. He got a great deal, and was the first of the crew to turn states evidence. Im not sure Brent is as bad as people think. I think he just found the wrong partner. I think Brent did what most of us would do in the same situaiton, sing like a bird. The others in the group will pay dearly 15 to 20 years. This will drag on for a couple of years IMO.
They are all going to jail. If anyone was not going to jail, then the government would have given them immunity. The first to flip will get better deals, but they will still do time.
I don't understand federal sentencing guidelines, so I can't really comment on the likely sentences. But I do think that five years in jail is a long time. I thought Bernie Ebbers got too much (25 years). I've seen people get what I thought was too little.
I've seen people get 25 years for mortgage fraud, so it would not surprise me to see Wahab get over 15 years.
Chris,
You clearly did not read the indictments. Oncale was the mastermind in orchestrating the fictitious sale of A&O to Blue Dyamond and then Physician's Trust. Do you understand the magnitude of this? Do you realize that he and Wahab were the "owners" of those two fictitious companies? Those two had off shore bank accounts. Crooks have offshore bank accounts, not legit businessmen. Oncale knew exactly what he was doing and was smart enough to get those idiots to do all the dirty work. Knowing Oncale personally, he is 1000% guilty and the way he flaunted his "wealth" is vile. Oncale's biggest mistake wasn't partnering with Wahab, his biggest mistake is that he is a greedy filthy crook. 800+ investors. 100+ million in stolen funds. He IS as bad as people think and worse. I'm guessing you didn't lose a dime in all this nor did he steal your mom's retirement, did he? I'm sitting here wondering how I am going to take care of my 75 year old mother who needs medical care while he is out driving his Ferrari. For you to assume that Oncale did what most of us would do that in that situation is not only an insult, it's disgusting that anyone would ever imply that WE, the investors, would ever have gotten involved with people like this.
Joey
I'm by no means advocating anything Brent Oncale did or stands for! I was referring to talking to the Feds and cutting a deal early. I guess I'm confussed the Brent I know would steal this kind of money. I'm very sorry for your loss
Can someone explain to me why all the wives are not indicted? This is sex discrimination!!!! As I remember, Mackert wrote the so-called sales contract to Blue Dymond suggesting that all the wives were to be relieved of any of their positions in the company. Why are they not going to jail??? We wouldn’t have to worry about Mrs. Oncale buying some house because she would be on the hook for the money lost as well. You mean that she had no idea that the millions of dollars her husband was making was stolen? I didn’t read anything about exoneration of the wives in any of the plea agreements.
Where is Debbie Redenbacher? Why is she not indicted? She should be singing like a bird. She signed off on my investment and 3 weeks later, she cosigned with Almendinger when A&O turned around and sold my investment to Boutte! If you need the documentation, I'll gladly give it again. Let's not limit the jail time. They are all "deserving" felons in my opinion.
Chris,
By no means is my anger directed at you, this is all just such a clustered mess. I'm curious by your comment, do you actually know Oncale?
Sandy,
Thank you for your response. You are right in that we have to give the system time to work but this has been going on for 6-8 years! Dating back to when they first started A&O in 2002-2004 (from what documents state).
Just to clarify, the price of that 545K house had to have been (at least) what is listed on HCAD as it was a recent sale and values are the amount reported from the sale. The Oncale's had no money prior to A&O so the new house had to have come from the illegal activities.
There is no way that Oncale is paying for his legal services with anything but stolen money and that makes the whole situation disgusting. I also heard from a neighbor that he thought he saw Oncale in box seats at the Houston Texans football games. He has no job so where would the money for that come from? Clearly he has not changed his lifestyle and has not been stripped of any assets.
I was unaware that we have the right to have input on these cases with the DOJ attorneys. Do you have a website or contact information? I certainly have a lot to say and share with them as his lifestyle is completely perpetuated by the ill forsaken funds. For so long now I have thought the joke was on us, but for once, I am starting to actually think that there might be some justice and the last laugh might actually be on him.
Sex Discrimination,
BRAVO to you! I am standing at my computer applauding you! Finally another investor who sees all parties being accountable. Ruth (Madoff) Alperin got off easy. The feds let her keep 2.5 million so who knows what Oncale had planned for his wife. I guess lucky for them, Madoff put a nice template in place for him to copy. I just re-read the purchase and sale agreement and all three of the wives (of the A&O) are mentioned/listed in the bill of sale and should ALL be held to the same laws as anyone else. I would know what was going on with my husband (financial or business deals) especially if a business was being sold and I was forced to "tender their respective resignation". When there are millions of dollars involved, you bet! The wives knew what their husbands were doing.
Joey, you should have received correspondence from the DOJ when all this happened. Eveyone who has filed a claim with the bankruptcy court has been identified as a victim in this, and should have been included. Here's the contact info from our last email on status:
U.S. Department of Justice
United States Attorney's Office
Eastern District of Virginia in Richmond
600 East Main Street
Suite 1800
Main Street Centre
Richmond, VA 23219
Phone: (866) 287-5410
Fax: (804) 771-2316
Trial has been set for March for 3 of the defendants. I'd write the US Attorney and get on the list. Surprised you didn't get anything, but they need to hear from you.
Does anyone know if the sales agents in other states who sold these products are being investigated both criminally and civilly as well? They received big commissions and were representatives of the fraudulent company and should be held accountable, too. At the very least, their life insurance licenses and securities licenses should be permanently revoked so future financial harm and loss to others can be avoided.
For anyone who's received anything from Fraud Recovery Group, beware:
Justice Department Asks Federal Court to Shut Down Ohio Firm That Allegedly Promotes Improper Theft Loss Deductions
Columbus Man Suspended from Law Practice
WASHINGTON - The United States has sued an Ohio man and his company, seeking to bar them from promoting a scheme that allegedly helps customers claim improper theft loss tax deductions, the Justice Department announced today. The suit also seeks to bar the defendants from preparing tax returns for others.
According to the civil injunction lawsuit, filed in the U.S. District Court for the Southern District of Ohio, Tobias Elsass of Columbus, Ohio, who is suspended from the practice of law, is the founder of Fraud Recovery Group, a Worthington, Ohio, company. Elsass and his company allegedly target potential customers who have experienced significant investment losses. In return for a percentage of the anticipated tax refund that will result from the defendants’ services, the government complaint alleges, the defendants prepare federal income tax returns for customers claiming a deduction from the "theft loss" the customer purportedly experienced
Federal tax law allows victims of certain criminal investment frauds to claim a theft loss deduction. But the taxpayer must be able to substantiate that the loss was the result of theft, among other requirements, in order to qualify for the deduction. The complaint alleges that Elsass and Fraud Recovery Group have repeatedly helped customers claim theft loss deductions when the customers did not qualify for them. As a result, the Internal Revenue Service has repeatedly disallowed customers’ deductions, the suit says.
Since 2001, the Justice Department's Tax Division has obtained more than 465 injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department
For those of you who might be delusional enough to think that Oncale just happened to partner with the wrong bunch, I can tell you what he is capable of doing....my kids grew up together with him, even went to grade school together. He was what we thought was a close family friend. But....He didn't bat an eye when he took over a hundred thousand from me knowing he had not intentions of ever paying it back. What kind of person is that? I've seen his lavish life style, the rancho, his warehouse with cars (yes plural)and motorcycles in it. I even have pix of them. I've seen the dining suite that cost over $30K, one chair alone was $3000. Oh, I can't go without mentioning that huge diamond ring he bought his wife with our money. These are the kind of things that are stamped into my mind and won't go away. All this makes me sick to my stomach.
Sandy,
Thank you for the DOJ info. I will call them tomorrow. Being that my mother is 75, she was really embarrassed that she was scammed. She didn't tell us until just a few months ago. The paperwork was all at her house where she was stuffing it all in a drawer (I guess hoping it would all go away). We are going through everything now. As far as the trial, will it be in Virginia (?). Do you (or anyone else) know if we are allowed to attend? I wouldn't have any clue about a Federal case/trial. These guys have had almost a year to calculate more lies since they signed their plea agreements so the trials should be interesting. What a mess they created for 800 investors and immediate families. I wonder how they sleep at night? I just can't imagine the DOJ letting the sales agents just walk either.
If the A&O representative that signed the fraudulent life settlement contract pleaded guilty, does that give the investor a right to file a civil suit against him?
Joey, the information we received from the DOJ indicates we're welcome to attend the trials, which will be in Virginia. Once you're registered in their system, they notify you of updates on the cases, and if your schedule and finances allow last minute travel plans, you can go. The notification system has been pretty reliable so far, and our input is welcome. As far as going after the sales agents, remember it's tough to get blood out of a turnip. I still believe the key is going after the firms who employed these hacks whose only interest was the big commission check after rounding up our money. E & O insurance won't help, I don't believe, but those who were operating under the umbrella of a large FINRA firm were responsible to their employers for their activities, and the firms were responsible for employee actions, regardless of whether they were aware of them.
The federal trial in Virginia is open to the public. The Virginia case includes all the A&O investor victims and acts that were committed in the name of A&O, not just those that occurred directly in Virginia. Once you have a victim in a particular jurisdiction with continuing fraud and the same conduct being engaged in by the promoters, the case can include all of the related victims and conduct regardless of where the victims live. Some sales agents have already lost securities and insurance licenses. Some are still in process. Filing a civil suit is only beneficial if you believe that the potential defendant still has some property or cash that can be seized to satisfy a judgment, should you be successful and win your civil suit. The bankruptcy trustee and the US Attorney in VA are going after all sources of funds and assets wherever they may be located to the extent the assets can be traced to having been purchased with A&O victims'funds.
Louisej,
What you have written sounds very good, theoretically, to the true victims of this fraud; however, how do you suppose these sales people could possible be included without having been named as yet. I wish you were correct but I can’t conceive how that would work practically. My sales people are not named and have not lost any license as a result of this fraud.
I find it unbelievable that the feds could spend millions of dollars investigated multiple frauds in Chicago, yet with a much larger fraud like A&O, they let the perpetrators of this fraud go free. So what if the FBI arrested a tow truck driver for shaking down a victim for $100!
I think most of us know the story of the Good Samaritan. Wouldn’t it be CRIMINAL to watch a rape occurring before your eyes and to do NOTHING! Well, I feel it is similarly criminal for any federal agency to allow these sales CRIMINALS to perpetrate other frauds upon investors when the feds could have easily stopped it. Yeah, 0.5% prosecution rate of the sales agents is pitiful. Don’t you guys (feds) recall Gray? He’s the guy who sold 2 different frauds before starting his own “private label.” Do the feds feel in the least way responsible for the fraud perpetrated upon subsequent investors because of feds lack of pursuing the sales agents. Some of the A&O agents have gone one step further-claiming that they are VICTIMS in this fraud. There are sales agents who are spitting in the face of US Attorney, the FBI, and the Postal Inspectors by expecting the Trustee to share whatever pittance recovered, with the same bastards that sold this FRAUD in the first place.
Here’s a simple solution: Mr. Dry, allow sales agents to plead guilty for a 5 year sentence. All will carry a “, convicted felon” after their name as they should. This will make it difficult for these criminals to perpetrate another crime. Anyone who moans should be charged with the maximum sentence that should put them away for life. See, I feel there is no fraud without these sales people-you only think it’s the main characters to prosecute. You show what will be done and I think a lot of these types of frauds won’t occur again. Certainly what you have done to date has had NO impact at all. You are not even revoking the licenses of the insurance and securities agents that sold this JUNK. Most of the state agencies that license these sales agents are to inept to prosecute them. Get this- FINRA has apparently, one, I mean one guy, who investigates any complaint filed with FINRA. Is that a joke? Unfortunately NOT! Don't the sales agents deserve losing any license that they may have? If the Feds don't do it, it won't be done.
Louise, if you know something else than what I presented, please let me know.
Godom,
Have you contacted the DOJ? You have information and documented assets (photographs) that could be of value to recouping some of the funds. Sandy Burton posted all the information above.
A&O investor,
Sept 9, 2009 Philip Thomas posted a list of the A&O sales agents involved http://www.mslitigationreview.com/uploads/file/AOSalesAgents.pdf your simple solution idea is brilliant of tagging them with a "convicted felon" label. BRILLIANT!!
Joey,
As far as I know, Oncale is still working. In fact, based on what he explained to me, he was brokering life settlements as a middleman. He no longer purchased them as an investment, instead, linked others who were interested in doing so for a commission.
His company is named Ranger Diversified Llc and is located in Houston conveniently in the same office complex area as Mackert. Oncale is at 1 Riverway, Houston and Mackert is at 3 Riverway, Houston. That's been about 4 - 5 months ago. Things might have changed since then. I found it amazing that he could even be remotely involved with the life insurance contracts consider what's going on. But go figure, look how long Adley continued to do business after he was told to stop by the government.
The list of sales agents must be just people directly associated with the "gang". The guy who sold us our deal isn't on the list, I guess because he worked for a real financial services firm, and "sold away" from his company, without their knowledge.
What's going to happen to the sales agents that weren't directly associated with the "gang"?
The agent that sigmed my contract was none other than Brent Oncale. He's the one I thought was a family friend, only to find out later was a shyster. Yes, I was told the same pack of lies that were brought out in the bankruptcy records. How their company was so great and the investment has ZERO risk, unlike the stock market. I bought it all; hook, line and sinker. Mainly because he was a family friend and I never, ever expected him to be a crook. Boy was I wrong.
Regarding the pix of the cars and other items of value, over a year ago I provided the information to the first trustee. When he was voted out, I called and spoke with the attorney supporting the second trustee. Either he already knew about them or he wasn't very interested in knowing more. Then after reading about the other crook's assets being seiged, I called the Feds in Virginia and told them all about it. They said they would contact me if they needed anything. To this day, I have not hear a peep from them.
Believe me, I would love to see Oncale stripped of everything he owns, both he and his wife. Virtually everything they have, collectively, was bought with stolen money. (Designer clothes, purses, nannies, maids, extravagant shopping sprees, custom jewelry, cars, motorcycle, guns, etc.) All of that should be SEIGED!
Before A&O, he had nothing. In fact, his parent had to help him get back on his feet after returning to Houston from San Francisco. It's all very sickening.
Here's a few of the things that we all helped pay for.....the lavish wedding at the Houstonian, the month long cruise in Europe they cut short because "it was raining", the elaborate Christmas parties every year, the exotic animal hunts, the parties with all his croonies at the rancho, the rodeo cook-off sponsorings, the donations to non-profit organizations to boost their ego, the "The Winn Hotel" Vegas trips, the numerous socilite events they attended portraying a prominent image paid for by us and the list goes on.
I was once told by his parents, he went to Church every morning thanking GOD for blessing him for his success. Can you believe that? I find some comfort in a statement my brother told me long ago, "there's a special place in HELL for people like this."
If he walks away unscathed, my confidence in the legal justice system will be shaken.
Personally speaking, I was lied to by the A&O
guy's as much as the investors were. I also feel like a victim of there fraud. How?
Being sued by my clients!!!!
Sandy,
I believe that the list of sales people is incomplete because this represents the criminals as of late 2006. The additional thieves who joined in after that time (eg-late 2006 and beyond) are not fortunate enough to have the illustrious names identified. Hopefully, the DOJ could provide a more complete listing that would include your sales CRIMINAL.
As to concerned,
I've been writing in an attempt to get the feds off ......... If you saw about Mr. Gray, that ought to answer your question. If he stuck to selling, he never would be facing jail time and probably would be selling his fourth or fifth FRAUD. It seems as though the feds get worn out after chasing the owners.
Did I mention that some of the CRIMINALS have spit, I said SPIT in the FACE of our federal agencies? Some are claiming they (the sales CRIMINALS) are investors too and want some of the crumbs that the Trustee might provide if there is anything left over after "expenses." What the sales CRIMINALS used as part of their sales pitch should land them squarely in jail. It MOST certainly would be a travesty of justice to actually share any proceeds with these thieves.
It's kind of nice that the sales CRIMINALS apparently have crawled under a rock.I think you know who I mean.
Mr. Agent,
Could you please elaborate on the lies you were told by A&O?
Thanks, I just want to understand because I heard a lot of negativity on this site.
I wouldn't be surprised if the sales agents were lied to about the product they were selling. However, as licensed professionals, it is incumbent on them to be familiar with the product they're promoting. They have a fiduciary responsibility to their clients. The Texas State Securities Board told me there was information available that the agents could have accessed that would have alerted them to pending action against the A&O principals, way back in 2006, when we bought into this. Ignorance on the agents' part isn't an excuse. They could have and should have known what was going on.
It amazes me that you can steal 100 million walk around free on bail, and continue to live like a King! What is even more amazing that Brent may not serve a day in prison!
So I'm probably the last guy on the face of the earth to get involved in all of this. My payout was to come Jan 2009, and my "broker" has been stringing me along with documents, and even an agreement he and his attorney had worked out with Provident PCI (and even signed by the President for a settlement (less than the payout) Either way, now it's 2010, and my broker won't even answer my e-mails anymore, or take a call.. SO WHAT NOW, HOW DO I GET ON THE DOJ LIST, OR AM I BETTER GOING AFTER THE BROKER IN CALIFORNIA?
What truly amazes me is that no one has been severely hurt through all this....I mean physically not monetary...If someone had stolen or conned me out of even 50K they would have been found stinking!!!!
Chris,
I'm just curious why you seem to think that Oncale isn't going to jail. You have mentioned it a few times, what do you know? Dish!
Well, I guess I spoke too soon (Agent).
Dear Agent,
You are in the lion’s den and you will have NO sympathy here. What, you were told you didn’t need a securities license to sell a fraudulent security? Well I’ll be. Just be lucky if you don’t spend the next 20 years inside a prison cell like you should. Loosing your money and respect should be the least of your worries.
If you’re an insurance agent, you don’t know what it means to sell an unauthorized insurance, which by the way in Texas, you’re on the hook for any and all losses. You “didn’t think” to call the Texas Department of Insurance if you weren’t sure. You didn’t think that the 10% or more commission was excessive? What lines did you use to seal the deal to your unsuspecting victims, I mean clients.
Did you mean A&O told you that you would never be caught and that you could claim that A&O is responsible for selecting the re-insurance company. (Hopefully, that idiot won’t come back and say what a great re-insurance company that PCI is and they ALWAYS pay their bills, NOT! PCI can’t even pay the miniscule 5 % that they agreed upon with the Trustee.) Did A&O tell you that by the time your unsuspecting clients found out, you’d be passed the statute of limitations? And they lied! Oh my!
Tell me from whom did you inquire if using you client’s hard earned retirement for this FRAUD was an IRS prohibited transaction. I suppose Entrust was completely fooled, too. They even contracted with A&O to be paid their commissions directly. Yet Long can go out on the circuit as a spokesperson for all the many ways Entrust can invest your retirement. Makes you wonder why Entrust hasn’t suffered.
How did you answer your customers question when they asked you what PCI insures in the U.S.?
How did you explain the role of the escrow company? And it was run out of an attorney’s office for a $100 million dollar corporation! Spalding claims he didn’t do anything, absolutely NOTHING. Then, John, what was the purpose of your company in the first place. Oh wait, John was fooled too, just like this Agent. Did A&O lie to Spalding, too? Spalding was just suppose to be the bag man and take his cut of this FRAUD and yet he expects to claim (like the REAL investors) a portion of the crumbs left after the lawyers finish eating.
I could go on……
Mr. Agent, fool me once shame on you. Fool me twice, shame on me.
Sandy, the fact that A&O “lied” to the insurance agents that a security license wasn’t required to sell this securities FRAUD, doesn’t really get them “victim status.” Each sales CRIMINAL knew exactly what they were doing as they used their sales pitches to defraud investors. They made more money in a shorter period of time than ever before, so they went for it! And to think that our government agencies are going to let these “untarnished” criminals financially advise others in the future, is incomprehensible!
So Mr. Agent, are you going to answer Joe I. or not?
Stuck in PA, you better contact the bankruptcy trustee if you ever even hope to recover anything out of your investment. Go to www.lifefundstrustee.com and follow the links to file a claim as an investor. I'm not sure if the deadline to file claims has passed, but do it today!
Just my opinion, but I think Brent struck a deal early in the process. The feds have been known to cut very nice deals with people who cooperate in these types of cases . He seems not to have a worry in the world from what I have heard. I have known Brent for 5 years are so, have not talked with him in over a year.
For any of the sales agents to go unpunished without substantial fines, making restitution or losing their insurance and securities licenses is a travesty! Pure and simple. Without the agent's input, influence and recommendation, none of these deals get done. What adds fuel to the fire is that they all received 8 - 10% commissions on the sale! Where is the justice?
I'd like to know how the DOJ got their figure of 10% commission. Did Bromseth "say" he got 10% or did the DOJ actually determine this figure themselves. I just can't help but think it is the latter. Since Secure Investments was paying 15 to 20% and Gray was paying 15%, I find it hard to think these sales CRIMINALS would settle for a 33% reduction. The sales person from Indiana claimed a 4% commission and my sales CRIMINAL claims 7% with a receipt from A&O. I truly think it would be nice for the FBI to actually research this thing. There could be a "hold back" waiting somewhere. Maybe it's time to get Brent and Tommee on the lie detector.
I read last week that Oncale pleaded guilty in court to those two measly counts of conspiracy and is awaiting sentencing. If he gets no jail time out of this it will be an outrage. I suppose the only justice will be in the fact that he will have to come up with a substantial amount of money to pay in restitution, hopefully enough to ruin him, and that he will be a convicted felon and unable to work in this sort of business ever again. Anyway to find out when the judge will pass out his punishment?
http://www.justice.gov/opa/pr/2010/November/10-crm-1286.html
Thanks for posting that link to the DOJ. Oncale is just disgusting but I have comfort in knowing that he is going to jail, even if it is for a short time. Something bigger is going to take him down. I just can't believe the DOJ, Feds, IRS, and FBI would let him just "walk" away from having more liability in all this. How is he able to just carry on like nothing ever happened? It makes no sense! I recently learned that Oncale traveled to Ft. Lauderdale a month or so ago. If you recall, that was where Mackart stated that they connected to fly to the Federation of St. Kitts and Nevis. I think we all know what that trip was all about. He is hiding money, I just hope the higher ups are paying attention.
I know that I have been at times a little too harsh on the lack of prosecution of the salespeople, since I have a lot of specific information about my case and feel very strongly that ALL parties involved are GUILTY. Now I understand more clearly. I did not intend to infer that our federal agencies were doing a poor job. I was merely attempting to “prod” our DOJ to include all the parties that I perceived conspired to make this fraud possible. I would like to thank the federal agencies that have brought this fraud to a close and the many hours spent on this as well as other frauds. I’m not happy about it but I have a little more appreciation for the “hassle factor” created by our judicial system.
I know from an undisclosed source that ALL of the main characters, including Oncale, should be spending a good amount of time behind bars. Oncale will NOT get off without serving time.
Brent will get house arrest IMO
Any sales agent that claims to be a victim of A & O is trying to avoid their own responsibility of doing the proper due diligence for their client BEFORE recommending the product and collecting their commission. If a sales agent is truly an honorable person they should immediately return the investor(s) original investment plus interest and refund their own commission as well. Funny how even the sales agents are claiming to be victims now after they failed to take responsibility for their own actions and now blame everyone else for their involvement in this crime! At a minimum, any sales agent involved in this scheme should lose their respective's state insurance license and any securities license they possess for life!
I was railroaded into a plea bargain and now I am going to trial in a civil case brought against me as a result of the criminal case. However the claim is bogus and I can prove I am not at all responsible. What happens when you plead guilty, but win the civil case.
Can you use it to withdraw your guilty plea?
I posted a comment back in the beginning of November concerning high end cars that Oncale had purchased. I recently dropped by the warehouse where they were being stored and it was all clean out. I hope for the investor's sake they were confiscated by the FEDS along with a lot of other items. If not, they were moved to a better conceal location.
told you all brent would walk....not a peep about him....amazing
The individuals who have pled guilty (Oncale, Mackert, David White, Kurz and Bromseth) will be sentenced after the trials are held for those who did not enter a guilty plea. The persons who have pled guilty are required by their plea agreements to cooperate and to provide testimony and evidence against those who choose to go to trial. The judge doesn't know how much cooperation these individuals have provided until after all the trials are held, which will certainly include the Wahab trial and maybe the Vargas/PCI/Castillo trial this fall.
sentencing was today, Brent got the MAX punishment, 10 YEARS in jail.