Bedford County man sentenced in fraud case [The Roanoke Times, Va.]

Sept. 05--A former financial adviser from Bedford County was sentenced Tuesday to 33 months in prison for stealing nearly $1million from his clients.

Michael Todd Crosswhite, 42, received the sentence from Judge Norman Moon in U.S. District Court in Lynchburg.

Prosecutors said Crosswhite liquidated the investment assets of several clients without their knowledge and transferred the assets into accounts he controlled.

Those funds were then lost to risky investments or kited among the accounts of various victims.

As part of his sentence, Crosswhite agreed to make restitution to his six victims in the amount of $943,864.

Crosswhite, of Forest, pleaded guilty in June to wire fraud and money laundering.

Assistant U.S. Attorney Charlene Day has said earlier that Crosswhite, who worked out of his home, was an independent agent affiliated with Allianz Life Insurance Company of North America.

An Allianz spokesman said Crosswhite was licensed to sell the company's products, as well as those of other companies. That relationship no longer exists, the spokesman said.

Crosswhite is not registered with the Financial Industry Regulatory Authority, an independent regulator of securities firms. He was last registered in 2009, according to the authority's website.

Defense attorney Abram Pafford of Lynchburg declined to comment on the case.

As part of a plea agreement, Crosswhite is barred from dealing with any insured banking institution without the permission of the Federal Deposit Insurance Corp. He remained free after Tuesday's sentencing, with orders to report to a federal prison in the near future.

In a prepared statement, U.S. Attorney Tim Heaphy said Crosswhite stole "from customers who trusted him to responsibly invest their hard-earned money."</p>

"Rather than protect their funds, he defrauded his clients and used their money for himself."

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