Adley H. Abdulwahab, Life Settlement Fraud, Virginia 2011

Two Houston principals of A&O Resource Management Ltd. have been sentenced for their roles in a $100 million life settlement fraud scheme that affected over 800 victims across the United States and Canada.

Adley H. Abdulwahab, 36, a hedge fund manager and part owner of A&O, was sentenced to 60 years in prison, while his co-founder and vice president, Christian Allmendinger, 40, was sentenced to 45 years in prison. The sentencing was announced by U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and Assistant Attorney General Lanny A. Breuer of the Criminal Division.

The victims of A&O’s scam were led to believe that they were investing in a safe, secure, and no-risk opportunity, but in reality, A&O was a sham, a financial house of cards waiting to collapse. Hundreds of elderly retirees saw their life savings vanish, and their lives have been devastated by their loss.

According to court records and evidence at trial, the principals at A&O engaged in a scheme to defraud investors by making misrepresentations about the company’s success, size, and office locations, as well as the risks of its investment offerings. Abdulwahab and Allmendinger were actively involved in the day-to-day management of the companies and the marketing of A&O life settlement investment products to investors.

The fraud scheme, which lasted from 2004 to 2009, caused over $100 million in losses to more than 800 investors, many of whom were elderly. The defendants used the investors’ money for personal enrichment, including purchasing luxury houses, fancy cars, and even a 15-karat diamond ring.

Abdulwahab and Allmendinger were convicted of their crimes in 2011. Abdulwahab was previously convicted of a felony charge of forgery of a commercial instrument in Texas state court and lied to investors about having a college degree in economics.

The Virginia Financial and Securities Fraud Task Force is dedicated to pursuing national impact frauds that affect not only those on Wall Street but also those on Main Street who work hard, play by the rules, and try to provide for their families.

The sentencing of Abdulwahab and Allmendinger brings an end to a lengthy and complex investigation that involved the coordination of multiple agencies and law enforcement teams. The case serves as a reminder of the importance of protecting investors from unscrupulous schemes and holding those responsible accountable for their actions.

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