Convicted Life-Settlement Hedge Fund Manager Gets 60 Years

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."


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note