Securities Lawyer Blog | Victim of Fraud?

TAG | life settlement fraud lawyer

Feb/12

7

Deerfield Beach, Florida, Rep Fined and Suspended by FINRA

Comments off · Posted by Securities Lawyer in FINRA

The following information was obtained on FINRA’s website’s ‘Disciplinary Actions, January 2012.”
 
Bradley John Delp (CRD #1701698, Registered Representative, Deerfield Beach, Florida)
 
submitted a Letter of Acceptance, Waiver and Consent in which he was fined $25,000 and suspended from association with any FINRA member in any capacity for two months. The fine must be paid either immediately upon Delp’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.
 
Without admitting or denying the findings, Delp consented to the described sanctions and to the entry of findings that he failed to provide prompt written notice to his member firm that he was employed by, or accepted compensation from, another person as a result of outside business activities. The findings stated that Delp was a shareholder and employee of an independent insurance agency who brokered fixed-term or whole life settlements for his insurance customers, and his insurance agency received a commission for most of the life settlement transactions it brokered.
 
The findings also stated that many years after Delp joined the firm and disclosed his outside business activity, the firm revised its WSPs to prohibit its registered representatives from participating in life settlements unless processed through the firm
and limited to products the firm offered through approved firm sponsors. Delp’s outside
business insurance company facilitated insurance company customers’ sales of fixed-term or whole life insurance policies to third-party companies. The life settlements were not brokered through the firm and most were not brokered with approved firm sponsors as required by the firm’s revised procedures. The findings also included that Delp formed a company in which he owned a half-interest. The company’s business was to negotiate, on behalf of Delp and other participating individual insurance brokers, commission rates from life insurance companies for insurance policies that they brokered.
 
FINRA found that Delp’s administrative assistant completed online Firm Element continuing education (CE) training courses for him. FINRA also found that Delp used, or directed his staff to use, copies of signature transparencies for customers to generate third-party checks, wire transfers and to journal money from related customer accounts although the customers had orally authorized the transactions.
 
The suspension is in effect from December 5, 2011, through February 4, 2012.
(FINRA Case #2009018233803)
 
The information from FINRA’s website has ended.
 
Securities Attorney, Lars Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses through Bradley John Delp of Deerfield Beach, FL, or losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: www.securitieslawyer.com.
 
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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Oct/11

10

Life Settlements Fraud Get Long Jail Sentences For Two Scammers

Comments off · Posted by Securities Lawyer in FINRA

Two men from Houston, Texas, have been sentenced to spend more than 45 years in prison for their role in a massive life settlements fraud scheme writes Darla Mercado in an October 7, 2011, article in InvestmentNews.com.

Christian Allmendinger, the co-founder and vice president of A&O Resource Management Ltd., and Adley H. Abdulwahab, a hedge fund manager and part owner of A&O, were sentenced to 45 years and 60 years in federal prison, respectively, on Sept. 27 and 28 in the U.S. District Court in Richmond, Va. The charges against the two also includes conspiracy to commit money laundering, securities fraud and mail fraud.

This case dates back to 2004, when Mr. Allmendinger and another man founded A&O, according to the U.S. attorney’s office in Richmond and the Justice Department.

Ms. Mercado writes that the firm offered individual investors whole and fractionalized interests in so-called bonded life settlements, which were supposedly backed against longevity risk with a reinsurance bond. These bonds were positioned as fixed-maturity investments with a term of four to seven years and marketed as providing a guaranteed minimum compounded annual rate of return of 10% to 12%.

As many as 800 investors, most of them elderly, bought up the investments, and A&O raked in some $100 million in clients’ dollars.

It was reported in the InvestmentNews.com article that Mr. Abdulwahab, who eventually became a partial owner of A&O, entered the picture when his marketing company, CA Houston Investment Center, or HIC, and independent insurance agents who weren’t securities licensed began selling the investments, according to the suit. A&O paid HIC and the agents a commission of 10% of each bonded life settlement purchase, authorities said.

Concerned that the firm was offering unregistered securities, securities and insurance regulators became suspicious in 2006. Federal enforcement agencies said the men set up a phony series of sales of A&O itself in 2007 to place greater distance between themselves and regulators’ scrutiny of the firm. The transactions ended Mr. Allmendinger’s and Mr. Abdulwahab’s ownership interests in A&O, according to law enforcement agencies.

It was reported that A&O went into bankruptcy in September 2009, due to failure to pay down the premiums on its underlying insurance policies.

Mr. Abdulwahab filed an appeal of the sentence last week, and Mr. Allmendinger also will appeal the sentence.

If you or a family member have become alleged victims of life settlement fraud, contact an insurance fraud attorney for a free consultation on how to recover your investment losses.  To speak with an attorney, call 888-760-6552, or visit securitieslawyer.com. 

We stand up and fight for the rights of consumers. Soreide Law Group, PLLC, representing Insurance Fraud Victims in Federal Court, State Court and before the Financial Industry Regulatory Authority (“FINRA”).

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