Texas man faces prison sentence for life insurance fraud

Apr 25, 2011

A Texas businessman is facing time in prison for defrauding multiple people who invested in his life insurance company.

A Texas court has heard the closing arguments in a case against a man accused of defrauding individuals who had invested in his life insurance company, reported the Washington Post.

Christian Allmendinger was one of the founders of A&O Life Funds, according to the newspaper, where he allegedly used investor money to buy life insurance policies from people at less than face value. Afterward, Allmendinger would collect the benefits when the original policyholder passed away.

The prosecution claims that hundreds of people lost about $100 million to the A&O scheme. The source said the prosecution presented the jury with photos of the defendant's lavish home and belongings while describing how Allmendinger and his colleagues used investors' money to fund their extravagant lifestyle instead of keeping policies current.

Allmendinger is also accused of creating a fake website for the company that said A&O had 70 years of insurance experience, when in fact it was brand new and had just two main employees.

Anyone interested in purchasing a life insurance policy should research various companies before making a commitment. Shoppers can also look up consumer reviews online to make sure a company is legitimate and see how current customers rate their satisfaction.
 

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