Businessweek reports that Adley Abdulwahab of Spring, Texas is charged with wire fraud, security fraud and money laundering. He was one of three principals in a Houston-based company that bought life insurance policies from insured people at less than face value, then collected the benefits when those people died and promised to share the payout with investors.
Justice Department attorney Albert Stieglitz said in his opening statement at the trial that company officials portrayed the investments as risk-free and the firm, A&O Resource Management Inc., as larger and more successful than it really was. Rather than putting investor funds into escrow accounts and using them to pay insurance premiums as promised, the prosecutor said, Abdulwahab and his partners funneled the millions directly into company coffers that they used "like their personal ATMs."
The prosecutor said Abdulwahab and others told investors and agents who sold the so-called "life settlement" contracts across the country that A&O operated internationally, had hundreds of employees in offices in several cities, had decades of experience in the insurance and investment businesses, and had successfully leveraged $579 million into $1.2 billion over five years. None of it was true, Stieglitz said…
Find out more at:
http://www.businessweek.com/ap/financialnews/D9NNNMAO0.htm
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