Texas Lawyer Pleads Guilty to Involvement in Alleged $100M Life Settlement Scheme

Texas attorney Russel Mackert has pleaded guilty to charges related to his involvement in an alleged $100 million life settlement fraud scheme that targeted over 800 investors. A number of the investors that Mackert scammed were retirees.

The Department of Justice says that Mackert, who was the attorney for a number of A & O entities, issued material misrepresentations, such as false statements, to investors about A&O Resource Management Ltd. and the related entities. This included making misstatements about the use of and safekeeping of investors’ money and the risks involved with the company’s products. Mackert is accused of marketed over $100 million of fraudulent investments to over 800 victims in the United States and Canada. Investors suffered over $19 million in financial losses.

Mackert has admitted to facilitating the false sale of A & O and making up a fictional person to play the role of the company’s representative. He also has admitted that he failed to let investors know that most of their investments were being used for purposes totally unrelated to the buying and maintaining of life settlement portfolios. He smuggled the cashiers’ checks outside the country in an attempt to open offshore bank accounts for hiding the ill-gotten gains.

The criminal charges against Mackert include smuggling $10 million in undeclared cashier’s checks outside the US and criminal information alleging conspiracy to commit mail fraud. Mackert is facing a maximum 5 years behind bars on the smuggling conviction and 20 years on the conspiracy charge. He also faces a $250,000 fine for each count.

Related Web Resources:
Lawyer in A&O Case Enters Guilty Plea in $100M Scam, The Life Settlements Report, November 24, 2010
Lawyer for A&O Entities Pleads Guilty for His Role in $100 Million Fraud Scheme Involving Life Settlements, US Department of Justice, November 23, 2010
Life Settlements, Stockbroker Fraud Blog
Institutional Investor Securities Blog

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