There were 800 victims, many elderly, harmed by an alleged fraud scheme
that spanned the United States and Canada, costing victims $100 million.
Five people from A&O Resource Management, Ltd., pleaded guilty and
were sentenced in a Virginia court.
"The impact of this massive fraud on many of A&O's investor
victims has been disastrous," said U.S. Attorney MacBride. "Hundreds
of elderly investors invested their life savings with A&O and saw
it all vanish in an instant. These investors were not looking for quick
cash, just a safe alternative to invest their retirement funds. The safety,
security, and no-risk nature of the investment was critical to the sales
pitch, and it was all a big fat lie."
"Brent Oncale and his co-conspirators operated a sham investment company
that turned fraud and deceit into a business model," said Assistant
Attorney General Breuer.
A&O allegedly marketed life settlement products and terms that did
not exist to investors. They supposedly painted a picture that exaggerated
the actual size and safety of A&O. When regulators became suspicious,
principals reportedly falsely sold the company to throw state regulators
off in their investigation.
The investigation was conducted by the Virginia Financial and Securities
Fraud Task Force, a partnership between criminal investigators and civil
regulators to investigate and prosecute complex financial fraud cases
around the nation. The task force is an investigative arm of the President's
Financial Fraud Enforcement Task Force, an interagency national task force.