W Financial Group, LLC, Adley H. Abdulwahab, Michael K. Wallens, Sr. and Michael K. Wallens, Jr.
On March 21, 2008, the SEC filed a civil action against W Financial Group, LLC, and its principals, Adley Abdulwahab a/k/a Adley Wahab, Michael K. Wallens, Sr. and Michael K. Wallens, Jr., alleging they fraudulently offered securities, known as Secured Debt Obligations (SDOs), to mostly elderly people and retirees.† According to the complaint, the defendants collected more than $17 million by representing the SDOs offered safety comparable to FDIC-insured certificates of deposit and were protected by multiple layers of insurance policies from major carriers, such as Lloyds of London.† The SEC also alleged that the defendants represented investor funds would be placed in a limited category of low-risk investments.
According to the complaint, W Financial had no insurance policies protecting the SDOs, and the defendants diverted nearly all investor funds to purchase assets that placed investor funds at considerable risk.† Moreover, the SEC alleged that W Financial failed to disclose to investors that it was barely earning sufficient funds to make current monthly interest payments and was not accumulating sufficient returns to eventually pay back investor principal or interest to investors who elected to compound their returns.†
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The Court appointed Vernon T. Jones, Jr. as Receiver. If you have questions, you can contact Mr. Jones by phone at (832) 476-3760 or by email at firstname.lastname@example.org