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02/13/09 - AUSTIN — The Texas Attorney General’s Office charged two investment plan owners on Friday with violating state securities laws in schemes that preyed on anxious retirees and teachers.

Howard G. Judah Jr. of Houston and Gregory F. Jablonski of Castle Rock, Colo., were accused in a civil enforcement action with failing to make required disclosures, selling unregistered securities and other Texas Securities Act violations.

State prosecutors claim that the men falsely guaranteed lucrative investment returns, misrepresented their “life settlement” policy investment offerings and failed to disclose key information to investors along with other violations of the Texas Securities Act.

Neither Judah nor Jablonski could be reached for comment on Friday.

“At a time of extraordinary market volatility, the defendants attempted to take advantage of anxious investors by falsely promising safe investments and guaranteed returns,” Attorney General Greg Abbott said in a statement.

A Travis County District Judge issued an order seizing more than $19 million in several bank accounts under the pair’s control. The Attorney General’s Office said it requested the receivership to protect the retirees and teachers who entrusted their savings to the investment scheme.

“Our goal today was getting these moneys locked down so these defendants could not have access to them,” said Tom Kelley, an Attorney General’s Office spokesman.

A $1 million payout was about to be disbursed Friday, possibly to one of the unlicensed brokers.

However, the receivership stopped that from happening, Kelley said.

Judah, a three-time felon convicted of financial crimes, and Jablonski each formed a limited liability company in their respective states called National Life Settlements, according to state securities board investigators.