AUSTIN -- Two men have agreed to 10-year prison terms for defrauding investors in their life settlements scam out of nearly $30 million.
The Texas State Securities Board said in a Thursday statement that Howard G. Judah of Houston and Gregory F. Jablonski of Castle Rock, Colo., pleaded guilty to defrauding anxious retirees and teachers. The Monday pleas in Houston were part of a plea bargain. Both men could have gotten 99-year prison terms.
The men will be sentenced Jan. 30.
Investigators say Judah, a three-time felon convicted of financial crimes, and Jablonski each formed a limited liability company called National Life Settlements. Prosecutors say the men falsely guaranteed lucrative investment returns, misrepresented their "life settlement" policy investment offerings and failed to disclose key information to investors.