by John Darer® CLU ChFC CSSC RSP
In what is sure to play out as a chilling tale of the need for greater regulation in an under regulated business, a federal grand jury in Richmond has indicted three Texas men for allegedly defrauding investors in their life insurance settlement businesses.
The 18-count indictment names … Christian Allmendinger of Houston, Texas; Adley Abdulwahab of Spring, Texas; and David White of Missouri City, Texas, as defendants. Charges include mail fraud, money laundering, conspiracy and securities fraud.
The US government is seeking a claw back of $103 million that it says the three illegally obtained by portraying investments as risk-free and guaranteeing returns of 10-12 percent.
Stay tuned!
P.S. A shot across the bow and a warning. The lack of regulation or under regulation makes the structured settlement secondary market ripe for money laundering. There is a distinct lack of transparency.
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