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Nevada woman sentenced in Va. for fraud

Friday - 8/31/2012, 1:40pm  ET

RICHMOND, Va. - A Nevada woman has been sentenced in Virginia to five-and-a-half years in prison for participating in a college savings scam.

U.S. District Judge Henry Hudson on Friday also ordered 62-year-old Linda Palmer Taylor of Henderson, Nev., to serve three years of probation after her release.

Taylor pleaded guilty to wire fraud conspiracy in May. According to court papers, Taylor and Edward Menster of Henrico County sold about $1.6 million in annuities to investors through two companies that claimed to help families secure college financial aid. They lied to investors about the security of the funds, which they used for their own gain, for other businesses and to pay earlier investors in a Ponzi-like scheme.

Menster previously pleaded guilty to wire fraud conspiracy and was sentenced to four years, 10 months.

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