5 local men to be sentenced for $100M fraud scheme

July 22, 2011 12:32:38 PM PDT
Five men who pleaded guilty in a $100 million fraud scheme that claimed about 800 victims across the country are due in federal court in Virginia for sentencing. The men were associated with Houston-based companies known as A&O, which purchased life insurance policies from individuals at less than face value and then collected the benefits when those people died. Prosecutors said A&O officials and associates misrepresented many aspects of their business to investors.

Among those set for sentencing Friday in U.S. District Court is A&O co-founder Brent Oncale of Houston. The others are former company president David White of Missouri City, Texas; former A&O lawyer Russell Mackert of Spring, Texas; former A&O wholesaler Eric Kurz of The Woodlands, Texas; and former A&O salesman Tomme (Tommy) Bromseth of Richmond.