CHESTERFIELD, VA (WWBT) - Thursday the US Attorney released details into what he's calling a fraud scheme that centered on life-insurance policies. Federal agents have arrested three Texas men and charged four others. We did some digging and found one of them is from Chesterfield County. He signed a plea deal admitting to mis-leading people into handing over millions.
Thursday a federal judge unsealed an indictment for three men at the head of Houston company A&O Resource Management. During a press conference the US Attorney detailed the case.
"The indictment though does speak in terms of this wide-ranging scheme occurring over a period of several years," said Neil Macbride.
Adley Abdulwahab is part of the trio that ran the company centered around life insurance settlements.
People with life insurance would sell their policies to A&O. Well in order to cash in on those life insurance policies A&O needed to pay the premiums. So they solicited for investors. Federal agents say more than 800 people invested more than $100-million. Yet those premiums were never paid.
Instead, investigators allege that the money was used to buy luxurious cars and expensive jewelry. Two homes were also seized- including one in Houston owned by Abdulwahab. Macbride believes it was purchased with investor money.
"There were 800 investors across the country, many of them were elderly and virtually none of them got a penny back," he said.
Now federal investigators have also charged a local man, Tomme Bromseth of Chester, in this crime. In court documents he admits to misleading investors and potential customers. In the one year that he worked for the company he took an investment of $600,000- his cut, a little more than $250,000. In all he collected more than $3-million for that Texas company.
In a plea deal 68-year-old Bromseth admitted he knew the investments weren't going towards the company and that he was not supposed to be selling securities.
Tomme Bromseth is not in custody.
All seven men will face a federal judge in Richmond.
The US Attorney has asked for the forfeiture of approximately $103-million be sold and that money go to the more than 800 victims across the nation.