LYNCHBURG, VIRGINIA -- A former financial advisor from Forest, Va., was sentenced this morning in the United States District Court for the Western District of Virginia in Lynchburg on wire fraud and money laundering charges.

Michael Todd Crosswhite, 42, waived his right to be indicted and pleaded guilty in June 2012 to a two count information charging him with one count of wire fraud and one count of money laundering.

This morning, Crosswhite was sentenced to 33 months in federal prison and three years of supervised release thereafter. The defendant also agreed to pay restitution to his victims in the amount of $943,864.

“Mr. Crosswhite stole over $1,000,000 from customers who trusted him to responsibly invest their hard-earned money,” United States Attorney Timothy J. Heaphy said today. “Rather than protect their funds, he defrauded his clients and used their money for himself. This United States Attorney’s Office will vigorously prosecute investor fraud in all its forms and bring those responsible to justice.”

Crosswhite previously admitted that while serving in his role as a financial advisor he defrauded several victims of approximately $1,000,000 by liquidating their investment accounts without their knowledge. The liquidated assets were then transferred, again without the consent or knowledge of the victims, to accounts established by the defendant. Those funds were then lost in risky investments, used by Crosswhite and/or kited between accounts of various victims.

The investigation of the case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service, the Campbell County Sheriff’s Office and the Amherst County Sheriff’s Office. Assistant United States Attorneys Charlene Day and C. Patrick Hogeboom III are prosecuting the case for the United States.

 

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