A&O Update: Jury Convicts Allmendinger, Wahab Next to Go Down
Many news sources are reporting on the conviction this week of A&O Life co-founder Christian Allmendinger in connection with A&O's fraudulent investment scheme. Here is CBS Moneyline's article.
Allmendinger will be sentenced on August 12 and faces 22 to 27 years in prison. Investors lost $80- $100 million in the scheme. As reported on Corrections.com:
According to court records and evidence at trial, Allmendinger was a co-founder and vice president of A&O and was active in the day-to-day management of the companies, as well as in the marketing of A&O life settlement investment products to investors. He and others engaged in a scheme to defraud investors by making misrepresentations about such things as A&O’s prior success, its size and office locations, its number of employees, the risks of its investment offerings, and its safekeeping and use of investor funds. Evidence at trial showed that Allmendinger routinely used investor funds for personal enrichment, including a $2 million home, a Lamborghini Spyder, and a 15-carat diamond ring, among other property.
When state regulators began to scrutinize A&O’s investment products, Allmendinger and his co-conspirators decided to sell A&O in August 2007, which ended Allmendinger’s association with the fraud scheme. The indictment alleges that, through a series of sham sales, co-conspirators, including Abdulwahab and David White, continued the fraud scheme through September 2009.
Five individuals have pleaded guilty in connection with the A&O fraud scheme: White, the former President of A&O; Brent Oncale, former vice president of A&O; Russell E. Mackert, an attorney for A&O; Eric M. Kurz, a wholesaler of A&O investment products; and Tomme Bromseth, an A&O sales agent in the Richmond area.
A&O ringleader Adley Abdulwahab's trial is scheduled for July 5.
I first started blogging about A&O back in 2009 when this blog had far fewer readers than it does now. In fact, back then most of my readers were outside of Mississippi and reading the blog for A&O information. In this May 2009 post I theorized that the sale of A&O was bogus and that Wahab still ran the company.
Wahab's Houston attorney threatened me with a defamation lawsuit and inurance agents from across the country called to tell me that my suspicions about A&O were wrong. it turns out that at the time A&O was still stealing investor's money.
Read all my A&O related posts here.
While all the criminal prosecutions have been going on, we've been patiently waiting for the bankruptcy proceedings to make progress. Has anyone heard or received anything from the trustee regarding any financial proposals? Months ago, I was told by one of the firm's reps that some kind of financial settlement would be forthcoming in the first quarter of this year, but so far nothing, and I received no response to an email inquiry.
I was told the same thing and have recently been told that the exit plan is forthcoming, however, not by end of first quarter. Hopeful that some of the confiscated property proceeds will trickle down to us as well and give us a little more than first expected.
The "A"s are jailed now just the "O" to go. Abdulwahab and Allmendinger are both now incarcerated so Oncale should be next. At this point, nothing has been confiscated from Oncale. Regardless that he plead guilty to two counts, he still should be financially held accountable. How has he NOT been penalized at all? Mr. Thomas called it a long time ago, Keyser Soze...
I suspect an exit plan may be forthcoming too, as I've noticed the attorneys are getting their share of the money already. Pretty much sucks that they get full compensation and the investors are left hung out to dry...but that's the system I guess, and they don't work for free.
Oncale's plea agreement says he will surrender his assets and make restitution so if any of that is violated, his plea agreement is out the door. Here's the agreement http://lifefundstrustee.com/Oncale%20-%20Plea%20Agreement%20%5BDocket%20No.%204%5D.pdf
I read the plea agreement a long time ago and it infuriates me every time I see it. Oncale was such a huge part of all of this, including the sham sales, and he has not surrendered NOR turned over a penny of our money in restitution. He has not forfeited so much as a cuff link. This is know as fact. He should not have been allowed to have a plea agreement. I pray every single night one of the other federally governed entities brings him up on additional charges. He should not be allowed to walk the streets for what he has done. The internet is amazing when you want to research information. Has anyone noticed Brent Oncale has a LinkedIn page listing he is the president of a company called Ranger Diversified that is the same exact address as the one they used for A&O? Is this company in operation? How is this even possible? Nathan Vardi of Forbes magazine wrote an article a year and a half ago that tells the story very clearly. Even after he stole our money he set up other companies to continue his crimes http://www.forbes.com/2009/09/17/life-insurance-settlements-a-and-o-business-insurance.html
I wish the Trustee would explain the reason for charging the estate 80K per month at this time. I'm all for spending money if it will mean more for the investors. At this rate, what percentage might we expect?
I'm all for paying the trustee if he delivers on procuring more money for the victims of this A&O fraud, but at $80,000 per month, I wonder if the trustee's reclamation can outpace the expenditures. I'm sure the trustee has a detailed explanation if he could just share that with the investors, I know the doubters will be satisfied.
My opinion is let's cut our losses, quit paying the attorneys, split what's been recovered among the investors, and move on. Once this is finalized, we can move on to the inevitable lawsuits that will come.
I'm still waiting for Dr. Kamen to send me that $10,000 check. Does anyone know how I might be able to contact Dr. Kamen? I can't imagine him not sending forth that check that he promised regarding PCI. I sure hope he received his investment back from Fox. I must have saved him a lot of money by "exposing" PCI before the feds. Please post some contact info.
Hope you're not holding your breath on that one , Mr. Investor..haha Anyway, the "pot" is being drained by attorney's fees at this point, and I doubt any more money will be recovered. Time to settle up and move on!
I have watched this case from the onset. I have come to realize that the victims are not only victims of the criminal acts done but victims of the bankruptcy system too. I see where the trustee gets $895.00 per hour, that seems extremely excessive. Who is worth that?
Has it become an "legal" open checkbook?
Laws need to be changed to preserve assets for the true victims involved and money needs to be set aside in some sort of preservation fund that is only for the victims involved.
The practice of law is huge business with the premise of billable hours and more billable hours. What kind of money is going to left for the investors with the huge fees eating away at "their money" every single day. That's a crime in itself.
That's exactly my point "Onlooker". At this rate there will be nothing left for the investors. Wonder what happens if the entire fund is drained. Who pays the attorneys then?
We paid $6400 plus in legal fees to prepare for Proskauer's second interim fee.
For those of you who think that Oncale is going to walk away with just a slap on the wrist and no prison time you are wrong. I spoke with a friend who is close to him and they told me that the prosecution is asking the judge for no less than 120 months in prison and that they expect to get it. It's not nearly as much as he deserves, but at least it's something.
I can't figure out as to why Eric Kurz, one of the indicted, has dropped off the radar. He was the headhunter that lined up the sales agents to sell this thing with trust that had built up over the years. Anyone know??
I can't figure out as to why Eric Kurz, one of the indicted, has dropped off the radar. He was the headhunter that lined up the sales agents to sell this thing with trust that had built up over the years. Anyone know??
http://thecorporateinsider.com/content/view/98/37/
Kurz pled guilty.