Life Settlement Hedge Fund Fraudsters Sentenced

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.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.