Barry Pollack's Opening Statement in the Allmendinger trial Quoted in Austin American-Statesman
"Texas Man Goes on Trial in Va. in Alleged Fraud"Austin American-Statesman
Barry Pollack is quoted from his opening statement from the trial of Christian Allmendinger, who stands accused of fraud related to investments sold by his company, A&O Life Funds. Pollack, Allmendinger's attorney, did not dispute that his client and A&O made a lot of money. But he said Allmendinger did nothing illegal. "He believed in the products A&O was selling to investors," Pollack said. He said the marketing materials that the government claims contain lies were intended to get the company's sales agents excited about selling the product, and were not targeted to investors.
According to Pollack, the company met all its obligations and nobody lost any money until after Allmendinger was "squeezed out" of the business by his two partners in 2007. He said the partners told Allmendinger a company wanted to buy A&O, then created a sham firm to buy out his share using some $750,000 they took out of A&O's bank accounts. It was only then, Pollack said, that the company began allowing insurance policies to lapse and investors began losing money. He said the partners made more than $11 million, in part by taking money that should have been used to keep insurance premiums in force, before being shut down by regulators just a few months later.