Wednesday, August 9, 2006

Founder of Private Boys School Charged

The United States Attorney for the Western District of Virginia has charged the founder and CEO of Wellspring Academy in Sutherlin, Virginia with "bank fraud, assisting in the preparation of false tax returns, mail fraud, wire fraud, perjury, and money laundering."  The 36 count indictment emanating from a bankruptcy proceeding alleges that the accused, in an effort to stay afloat, was committing a variety of crimes including an allegation that he "knowingly made a false material declaration in regards to the licensing of the counselors that worked at Wellspring Academy." According to the US District Attys Press Release, the school, which closed, charged from $43,000 to $49,000 per student. For more details see the press release here from the US District Attorneys Office for the Western District of Virginia.   

(esp)(w/ a hat tip to fraud update).

http://lawprofessors.typepad.com/whitecollarcrime_blog/2006/08/founder_of_priv.html

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