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Va. man sentenced for defrauding customers

Tuesday - 9/4/2012, 1:31pm  ET

LYNCHBURG, Va. - A Forest man will spend more than two years in prison for taking more than $1 million from customers through a Ponzi scheme.

Michael Todd Crosswhite received a two-year and nine-month sentence Tuesday in federal court in Lynchburg. He also agreed to pay more than $940,000 in restitution to the victims.

The 42-year-old Crosswhite pleaded guilty in June to wire fraud and money laundering.

U.S. Attorney Timothy J. Heaphy says the former financial adviser defrauded his customers and used their money for himself.

Crosswhite had admitted to liquidating customers' investment accounts without their knowledge and transferring the assets to accounts he had established.

Some of the money was lost in risky investments. Crosswhite also kited money between victims' accounts.

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