Christian M. Allmendinger, $100 Million Fraud Scheme, Virginia 2011

A Houston man has been convicted in a nationwide scheme that swindled over $100 million from more than 800 investors across the United States and Canada.

Christian M. Allmendinger, 39, was found guilty of one count of conspiracy to commit mail fraud, two counts of mail fraud, one count of conspiracy to commit money laundering, two counts of money laundering, and one count of securities fraud.

The scheme, run by Allmendinger and his company A&O Entities, promised investors high returns on life settlement investments. However, the company used false statements and misrepresentations to lure in investors, who ultimately lost their life savings.

The indictment alleges that Allmendinger and his co-conspirators used the funds for personal enrichment, including a $2 million home, a Lamborghini Spyder, and a 15-carat diamond ring.

When state regulators began to scrutinize A&O’s investment products, Allmendinger and his co-conspirators decided to sell the company in August 2007. However, the indictment alleges that they continued to perpetuate the fraud scheme through a series of sham sales until September 2009.

Five individuals have already pleaded guilty in connection with the scheme, including the former President of A&O, David White, and an A&O sales agent in the Richmond area, Tomme Bromseth.

Allmendinger faces up to 20 years in prison on each count except for securities fraud, for which he faces up to 5 years. He is scheduled to be sentenced on Aug. 12, 2011.

This case is a result of an ongoing investigation by the U.S. Postal Inspection Service, Internal Revenue Service, and FBI, with assistance from the Texas State Securities Board.

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