Richmond Man Sentenced for Multi-Million-Dollar Fraud Scheme
|U.S. Attorney’s Office February 15, 2013|
RICHMOND, VA—Allen Mead Ferguson, 75, of Richmond, Virginia, was sentenced today to 14 months in prison, followed by two years of supervised release, for mail fraud and money laundering. As part of his sentence, Ferguson was ordered to pay $5,652,555.75 in forfeiture and $2,943,776.53 in restitution.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas J. Kelly, Special Agent in Charge, IRS-Criminal Investigation, Washington DC Field Office; and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after sentencing by United States District Judge Henry E. Hudson. Ferguson pled guilty to both counts on November 14, 2012.
“Mr. Ferguson was a prominent member of the Richmond community who chose to steal millions of dollars to maintain his social status,” said U.S. Attorney MacBride. “Today’s sentence sends a message that regardless of one’s position in life, no one is above the law.”
“Through fraud and deception, Mr. Ferguson was able to obtain an excess of $5.6 million dollars from a number of financial institutions,” said FBI SAC Mazanec. “The public should be reminded to completely and accurately file their information with financial institutions. Today’s sentencing strongly demonstrates the penalty associated with lying to a financial institution.”
“No matter what your position, it is unacceptable to submit false information to a financial institution in an effort to secure a loan,” said IRS-CI SAC Kelly. “Today’s sentencing is a reminder that status and prominence will not protect you from federal prosecution or imprisonment.”
According to court documents, from about February 2006 through April 2010, Ferguson made material misrepresentations and omissions on personal financial statements submitted to various federally insured financial institutions. On these financial statements, he knowingly and intentionally stated, among other things, that he had: (a) $1 million in deferred compensation; and/or (b) $2 million in Virginia tax-free bonds. In fact, as Ferguson was aware, he had not had any deferred compensation since 1998 and had not owned $2 million in Virginia tax-free bonds since at least January 2009. In reliance on these false financial statements, the federally insured financial institutions extended various promissory notes and loans to Ferguson. In 2011, Ferguson filed for bankruptcy. At that time, the federally insured financial institutions were owed $5,652,555.75. As a result of the bankruptcy proceeding, the financial institutions received some compensation but, at the time of sentencing, still had a loss totaling $2,943,766.53.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Internal Revenue Service. Assistant United States Attorney Jessica Aber Brumberg prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.