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

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.