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

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

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

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of