A Texas lawyer has pleaded guilty to his role in a $100 million fraud scheme involving life settlements, authorities said. Russell Mackert, 51, of Spring, Texas, pleaded guilty to conspiracy charges in connection with his role as a lawyer for the A&O entities.
According to court documents, Mackert admitted to making material misrepresentations and omissions to investors about A&O. Specifically, he admitted making false statements and omissions about A&O’s safekeeping and use of investor funds and about the risks of A&O’s investment offerings.
Mackert also admitted that he and his co-conspirators failed to inform A&O investors that the vast majority of investor money was used for purposes wholly unrelated to purchasing and maintaining portfolios of life settlements.
He further admitted to facilitating the sham sales transaction of A&O to Blue Dymond and creating a fictional person named ‘RJ Stephenson’ to serve as Blue Dymond’s purported representative.
The scheme targeted over 800 victims across the United States and Canada, with losses estimated at over $100 million, including $19 million in losses to investors.
Mackert faces a maximum penalty of 20 years in prison on the conspiracy to commit mail fraud charge and five years in prison on the bulk cash smuggling charge, as well as a $250,000 fine on each count.
The investigation was conducted by the U.S. Postal Inspection Service, Internal Revenue Service, and FBI, with significant assistance from the Texas State Securities Board.
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Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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