Local man gets 45 years in fraud scheme in VA

September 28, 2011 3:59:54 AM PDT
A Texas businessman convicted in a $100 million fraud scheme has been sentenced to 45 years in federal prison.

Christian Allmendinger of Houston was sentenced Tuesday in federal court in Richmond.

Prosecutors had sought a 125-year prison term. His attorney had called that recommendation "wildly disproportionate" and had asked for a term of 10 to 12 years.

A jury convicted Allmendinger of seven counts of fraud and money laundering in March. Allmendinger was the co-founder of Houston-based companies known as A&O that bought life insurance policies from insured people at less than face value and promised investors hefty returns when those people died and the benefits were paid.

However, A&O allowed policies to lapse and more than 800 investors in some three dozen states and Canada lost money.

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