By Staff Reports | Times-Dispatch

Published: November 11, 2010

http://www2.timesdispatch.com/news/2010/nov/11/b-texx11-ar-645577/

Richmond, Va. --

A Houston man pleaded guilty in U.S. District Court in Richmond yesterday for his role as a principal of the A&O entities, a group of businesses that acquired and marketed more than $100 million of investments in life settlements to more than 800 victims across the United States and Canada

Brent Oncale, 36, pleaded guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering involving more than $50 million in losses to investors. He faces a maximum penalty of five years in prison and a $250,000 fine on each count.

According to court documents, Oncale admitted to making misrepresentations to investors about A&O. Oncale also admitted that he and his co-conspirators failed to inform A&O investors that the vast majority of investor money was used for purposes wholly unrelated to purchasing and maintaining portfolios of life settlements.

The investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, a partnership between criminal investigators and civil regulators to prosecute complex financial fraud cases in Virginia and across the nation.

Life settlements involve the sale of life insurance policies.