Thursday, October 8, 2009

Virginia Couple Sentenced In Church Community Ponzi Scheme

Darrell Underwood, 42, and his wife, Cynthia Underwood, 41, of Chesterfield County, Virginia, were each sentenced for operating a Ponzi scheme that defrauded their church community out of some $9.7 million. Darrell was sentenced to 10 years and Cynthia to 3 years, respectively. They had pleaded guilty last June to conspiracy to commit mail fraud. The Underwoods operated a "foreclosure rescue" business called Walkwood Properties, based in Midlothian, Virginia. Prosecutors alleged that the couple paid earlier investors with funds taken for later investors, all of whom were promised up to 50 percent returns within 60 - 90 days. They must also pay full restitution.

Read the story here and here.

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