GUILTY PLEA IN FRAUDULENT INVESTMENT SCHEME
Michael Crosswhite of Forest, Virginia pled guilty this week to wire fraud and money laundering in U.S. District Court for the Western District of Virginia. The Information filed in Court alleged that he engaged in a wire transfer of $113,805 from a victim’s Allianz account to a bank account Crosswhite controlled, and that he transferred $103,079 by wire from another victim’s Allianz account to a TD Ameritrade account. According to this Lynchburg News & Advance article, the U.S. Attorney’s Office stated that “Crosswhite was working from his home as a financial consultant under the umbrella of Allianz Life Insurance Company of North America.” The article further stated that Crosswhite admitted “he liquidated the investment accounts of several victims without their knowledge, eventually using funds himself, losing them in questionable investments or floating them back and forth to pay off victims? accounts.” This activity describes a classic Ponzi Scheme where monies from recent victims are used to pay past victims to keep the scheme hidden.
According to the State of Virginia’s Bureau of Insurance website, Crosswhite was registered to sell insurance (Life, Annuities, Health, and Variable Contracts) until September 1, 2011. He further is listed in FINRA’s Brokercheck as being a registered securities representative for Metlife Securities until December, 2009.
If you are a victim of a ponzi scheme, or have otherwise had your trusted investment representative transfer your monies without your knowledge, please contact Greco & Greco for a free consultation with one of our attorneys.
Posted by Greco & Greco on 06/15 at 06:21 PM
Brokerage Firms • Allianz • Metlife Securities • FINRA • Insurance • Ponzi Scheme • Securities Fraud • State Regulators • Virginia • Unauthorized Trading • Variable Annuities •
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