Sunday, 24 July 2016
Last updated 1 day ago
Jul 25 2011 | 2:05pm ET
Five of the seven men convicted in the A&O Resource Management hedge fund fraud have been sentenced to a combined 38 years and eight months in prison.
A&O founder Brent Oncale received 10 years and former president David White five, the U.S. Justice Department said. But the judge saved the harshest sentence for A&O's top lawyer, former general counsel Russell Mackert, who received more than 15 years.
A&O fraudulently marketed life settlement products to investors, many of them elderly, lying about its past returns, assets under management and risks, prosecutors alleged. The five men sentenced all pleaded guilty over the last nine months.
"The impact of this massive fraud on many of A&O's investor victims has been disastrous," Neil MacBridge, the U.S. attorney in Richmond, Va., said. "Hundreds of elderly investors invested their life savings in A&O and saw it all vanish in an instant."
In addition to Oncale, White and Mackert, A&O wholesaler Eric Kurz and A&O sales agent Tomme Bromseth were also sentenced, to five years and three years, respectively.
Two other A&O defendants are awaiting sentencing. The firm's hedge fund manager, Adley Abdulwahab, will be sentenced on Sept. 28 and co-founder Christian Allmendinger on Aug. 14. Both men pleaded not guilty and were convicted at trial. Abdulwahab faces up to 225 years in prison and Allmendinger 135 years.