Virginia Financial Advisor Pleads Guilty to a $1 Million Ponzi Scheme

Michael Todd Crosswhite has admitted to committing a $1 million Ponzi scheme while working as a Financial Advisor under the umbrella of Allianz Life Insurance Corporation in the town of Forest, Virginia. Mr. Crosswhite pled guilty to the charges in July, 2012, and was sentenced to 33 months in jail on one count of wire fraud and one count of money laundering. The judge also mandated Mr. Crosswhite to pay a restitution of $997,864 to the victims.

During his court appearance, Mr. Crosswhite admitted to having defrauded many investors of almost $1 million by liquidating their investments accounts once he gained control without letting them know. He would then proceed to transfer the assets to accounts he created and would invest that money into risky products. His clients were unaware of these unauthorized transactions, which Mr. Crosswhite allegedly kept hidden by using some of the funds he took from investors to pay others off in a classic Ponzi scheme fashion.

If you are an investor who lost money by investing with Mr. Crosswhite, call Sonn & Erez to explore your legal options. Sonn & Erez is currently investigating the possible liability that Mr. Crosswhite’s former employers may have had for their failure to properly supervise Mr. Crosswhite, and their failure to uncover this alleged fraud.

Sonn & Erez is a nationally recognized securities law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. For more information, you may call toll free 1-844-689-5754 or 954-763-4700.

Rate this post:

1 Star2 Stars3 Stars4 Stars5 Stars
(No Ratings Yet)
Loading...