Tuesday, 27 January 2015
Last updated 9 hours ago
Sep 29 2011 | 11:44am ET
A life-settlement hedge fund fraudster was sentenced to 60 years in prison for ripping retirees and others off to the tune of $100 million.
Adley Abdulwahab managed A&O Resource Management's hedge fund. He was convicted in June of 15 counts; the Houston man had taken the stand in his own defense the day before a jury returned the guilty verdict, admitting to some "puffery" but denying the central allegations against him: that he lied to investors and agents about the life settlement contracts his firm sold.
"I'm not like the other individuals who signed plea agreements and continue to lie," Abdulwahab told the jury. But perhaps he should have been: The five men who pleaded guilty, including A&O founder Brent Oncale, received sentences ranging from three to 15 years.
The other A&O defendant to go to trial and lose, co-founder Christian Allmendinger, was sentenced to 45 years in prison, the Justice Dept. said.
"The victims of A&O's scam were looking for a conservative investment, and they were manipulated into believing that A&O was a safe, secure, no-risk investment," U.S. Attorney Neil MacBride said. "Hundreds of elderly retirees saw their life savings vanish, and their lives have been devastated by their loss."
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…