Judah, a three-time federally convicted felon, was the former CEO of National Life Settlements LLC of Houston, and Jablonski was a principal in the company.
National Life Settlements sold about $30 million in investments that were purportedly tied to the payout from life insurance policies the company acquired.
The indictments stem from an undercover investigation by the Texas State Securities Board into NLS' claims that it would pay investors a no-risk return of 10% a year.
That investigation led to a civil suit against NLS by the State Securities Board and Texas Attorney General's Office and the court-ordered appointment of a receiver to oversee the company. In December 2009 investors received $19.8 million, or 69% of their money back as a result of the lawsuit and receivership.