A man accused of drowning two of his sons and trying to kill his former wife by driving them off a Los Angeles wharf to collect an insurance payout was sentenced on Thursday to 212 years in federal prison for fraud.
Ali Elmezayen, 45, received the maximum sentence from a judge who denounced the “evil and diabolical scheme”.
“He is the ultimate phoney and a skilful liar ... and is nothing more than a greedy and brutal killer,” US District Judge John R Walter said.
“The only regret that the defendant has is that he got caught.”
In 2019, a federal jury convicted him of mail fraud, wire fraud, aggravated identity theft and money laundering.
The judge also ordered Elmezayen to pay $261,751 in restitution to the insurance companies.
Judge Walter was especially troubled by the fact Elmezayen had spent years planning the killings.
“In my view, this demonstrates the vicious and callous nature of his crimes."
Elmezayen, of suburban Hawthorne, California, bought life and accidental death policies worth more than $3 million on himself and his family from eight insurance companies between July 2012 and March 2013, according to federal prosecutors.
He paid more than $6,000 a year in premiums for the policies while reporting income of less than $30,000 a year on his tax returns, prosecutors said, noting that he began buying the policies the same year he exited a Chapter 11 bankruptcy.
Prosecutors said Elmezayen repeatedly called the companies to verify the policies were active and that they would pay benefits if his former wife died in an accident as well as confirm with at least two insurers that they would not investigate claims made two years after the purchases.
Elmezayen drove a car carrying Rabab Diab, and their two youngest children, both of whom had autism, off a commercial fishermen's wharf in the San Pedro area of the Port of Los Angeles on April 9, 2015.
It was 12 days after the two-year contestability period on the last of his insurance policies expired, prosecutors said.
Elmezayen escaped through the open driver's side window and his former wife, who could not swim, was rescued when she got out and a fisherman threw her a flotation device. The boys, 8 and 13 at the time, were strapped in and could not escape the vehicle.
The couple's third son, Elhussein Elmezayen, 20, who survived because he was away at camp at the time, spoke at the sentencing trial.
He accused his father of leaving them in "misery and poverty", and squandering his savings on his "low-life family" in Egypt.
"We wish my brothers didn’t die for your financial gain," he said.
"I hope you know I don’t want anything to do with you any more ... don’t call me, don’t write me," he said.
Elmezayen received more than $260,000 in insurance proceeds from two companies on the policies he had taken out on the children's lives and used some of the money to buy properties in Egypt and a boat, prosecutors said.
After the car plunged into the water in 2015, Elmezayen was charged in the federal fraud case and accused by local prosecutors of murder, attempted murder and a special circumstance that the killings were for financial gain.
The murder charges were listed to be prosecuted after the federal case.
"A bench warrant has been issued and our office is evaluating the next step," Greg Risling, a spokesman for the Los Angeles County district attorney, told the Associated Press.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.