It was recently reported that Michael Todd Crosswhite, 42, of Forest, Virginia, a financial adviser, admitted that he stole more than $1 million from his clients. They stated that Michael Todd Crosswhite pleaded guilty to wire fraud and money laundering during a hearing in U.S. District Court in Lynchburg.
The prosecutors in this case said that Crosswhite liquidated the investment accounts of several of his clients without their knowledge and then transferred these assets into accounts he controlled. Crosswhite was allegedly working from his home as a financial consultant for Allianz Life Insurance Company of North America. Crosswhite then lost these funds to risky investements.
This activity is best described as a “Ponzi Scheme,” where money from recent clients is used to pay past clients to keep the scheme hidden. Crosswhite faces up 30 years in federal prison.
Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, represents clients nationwide. If you or a family member have become a victim of this or any other Ponzi Scheme, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: https://www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.