Dec 15
2010

Adley Husni Abdulwahab was indicted Dec. 15 on six federal charges of securities fraud, aiding and abetting, and conspiracy for allegedly selling millions of dollars of "collateralized secure debt obligations" through the W Financial Group (WFG).

Abdulwahab and other principals of WFG took in more than $17 million in proceeds from the sale of these investments to about 180 investors.

WFG officials sold the investments as promissory notes and investment contracts and falsely told investors they were backed by reinsurance policies.

A grand jury in the Northern District of the U.S. District Court, Dallas division, indicted Abdulwahab. Two other principals of WFG, Michaels Wallens Sr. and his son, Michael Wallens Jr., have pleaded guilty in U.S. District Court in Dallas to securities fraud charges.