A&O Update: AP Covers Mackert's Guilty Plea
The AP had a short article today on A&O front man Russell Mackert's guilty plea in federal court in Virginia:
RICHMOND, Va. (AP) — A lawyer involved in what authorities say was a $100 million life insurance fraud scheme has pleaded guilty in federal court in Richmond.
Prosecutors say 51-year-old Russell Mackert of Spring, Texas, pleaded guilty Tuesday to conspiracy to commit mail fraud and bulk cash smuggling. He faces up to 25 years in prison and a $500,000 fine.
Mackert was an attorney for A&O Life Funds, which bought life insurance policies from insured people at less than face value and then collected the benefits when those people died. Prosecutors said company officials illegally portrayed investments in their company as risk-free and guaranteed double-digit returns. They say about 800 people throughout the U.S. and Canada were victimized.
Mackert admitted misleading investors and trying to hide $10 million in profits from the scheme in offshore bank accounts.
I have seen the comments where people speculate that Oncale or others might not have to spend any real time in jail. I disagree. The federal court system generally does not work that way. Take for instance Michael Vick serving a year and a half in prison for charges related to dog fighting. That guy may be the NFL MVP this year, but he did time.
I can't say these guys will get the years in prison that cheated investors would like--but I do think that they will all serve time.
Here is the press release from the DOJ:
http://www.justice.gov/opa/pr/2010/November/10-crm-1346.html
I agree with you Mr. Thomas. Specifically because this is a newly formed Task Force and I believe they are going to want to make an example out of these guys as a deterrent to others. Do you know of anyway to find out when these men are to be sentenced, Mr. Thomas? If time permits I would like to be in the court to watch these crooks go down.
Mr. Mackert, when you stood next to me in the elevator leaving the Chicago bankruptcy meeting and you were draped by the 2 "thugs", you didn't look that big to me. You'll have a lot of time to think of your next scam or will you wisen up and not risk going back to jail? Hopefully, you'll also pay some price for the power company scam that you and Adley pulled. I'm hoping to be convincing that others definitely need to serve time.
ps-I knew then and it's was so unbelievable that the 2 "THUGS" didn't get paid. Did you attempt to put too much money overseas that you "couldn't pay" these poor attorneys and they were "panting" after you like a dog in heat. Isn't there some penalty for lawyers to be lying to the (bankruptcy) justice department?
Mr Thomas,
Understanding that you aren't savvy in federal law, do you know if additional charges can be brought up on these individuals by different departments (ie. FBI, US Postal Service, etc) even if they have offered a plea? It just shocked me that Mackert's two felony charges total 25 years (20 if served concurrently) and Oncale quite possibly will only serve 5. Doesn't seem "right".
James, you should be on the Dept. of Justice notification system if you're an investor in this. They send periodic updates letting us know when hearings are scheduled, etc. Here's the information if you need to contact them.
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
Thank you Sandy. I was not an investor in this, but did introduce a close family friend who is a Financial Advisor to Chris and Brent, who I knew through mutual acquaintances, in 2007. He did put a few of his clients on a deal which subsequently defaulted. I am merely following this case as a person who's friend, along with many others, were taken advantage of by this scam. Having seen these guys and their wives flaunt their stolen wealth around town without a single iota of shame or remorse, I truly hope you and other investors get your justice. Thanks again.
Thanks James. We'd feel pretty foolish, quite frankly, if there weren't at least about 799 other people, who were more knowledgeable about investments than we are, who were taken for a ride on this scam. I truly believe there's justice to be had, if not in the court system, certainly in the hereafter.
Still no word on when Mackert and Oncale are to be sentenced? Seems like they got to run around free and spend the holidays with their loved ones. Is this the normal protocol for this kind of case? Plead guilty and get a few months off to have some fun before going to jail? Leaves a bad taste in my mouth.. Any thoughts on this Mr. Thomas?
Yes, that is normal protocol in federal court. Don't ask me why. They also don't throw them in the clink at the sentencing. They give them a report date. Sort of like a hotel reservation.
Looks like the other guys are attempting to move the case from Virginia to Texas. It seems that the thinking is they will have a better chance to drag this on for years if they get it here because the Virginia court is known for their speed in getting through their case docket. Here is link.
http://finsecfraud.wordpress.com/
I find it par for the course that now that the tables are turned Allmendinger wants the case in Houston but when it was time to file bankruptcy he wanted it in Chicago....his argument for having it in Houston is exactly what he brushed off when the investors posed the same argument for the bankruptcy to be in Houston.
Quite a bit of new information is up on the Trustee's Website. I found Allmendinger's answers to the Trustee's complaints interesting.
Mr. Thomas.. Why would he Plead the 5th to every complaint posed? What sort of position are he and his legal team taking by doing this? He even pleaded the 5th to starting A&O with Oncale in 2006.
i just feel its wrong that oncale got to walk around free and living in his big house and nice cars, he should have to wait in jail also.