Texas man sentenced to 60 years for $100M fraud

September 28, 2011 - 4:35 PM

RICHMOND, Va. (AP) — A federal judge in Virginia has sentenced a former Texas businessman to 60 years in prison for his role in a $100 million life insurance scam that claimed more than 800 victims across the country.

U.S. District Judge Robert Payne sentenced 35-year-old Adley Abdulwahab of Spring, Texas, on 15 counts of conspiracy, wire fraud, securities fraud and money laundering Wednesday.

Abdulwahab was one of the principals of companies called A&O that used investor funds to buy life insurance policies from individuals at less than face value. Investors were supposed to be paid when the insured individuals died, but A&O's partners spent the money on lavish lifestyles instead of keeping the policies in force.

Another A&O principal, Christian Allmendinger of Houston, was sentenced to 45 years in prison Tuesday.