Maryland Accountant Sentenced to 24 Months For Role in Pension Fraud Scheme
ALEXANDRIA, Va. – Lloyd M. Mallory, Jr., 50, formerly of Silver Spring, Maryland, was sentenced today to 24 months in prison, followed by 3 years of supervised release, for his role in a pension fraud scheme that resulted in a loss to the victim exceeding $750,000. This sentence will run consecutive to the prison sentence he is currently serving on another fraud case that was prosecuted by this office.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and James W. McJunkin, Assistant Director in Charge of the FBI Washington Field Office, made the announcement after sentencing by United States District Judge Claude Hilton. Mallory pled guilty on March 28, 2012.
According to a statement of facts filed with his plea agreement, the fraud scheme involved the sale of loans to the Southern Management Corporation Retirement Trust, a pension plan created by Southern Management Corporation for its employees. From 2006 to 2007, Mallory’s alleged co-conspirator, Robert Fulton Rood IV, operating as a mortgage originator, sold to and managed for the Retirement Trust approximately 31 loans that he had originated. Of these loans, all but eight were not repaid. In January 2008, at the insistence of the Retirement Trust, Mallory was hired to perform a special review of files and processes associated with those loans. During this period, Rood and Mallory represented to the Retirement Trust that Mallory was an independent and disinterested CPA.
Contrary to their representations, Mallory was not an independent, disinterested CPA. He did not perform the review of the funds and processes that he had agreed to do. In fact, the report that purported to set forth the results of his review was written almost entirely by Rood and another conspirator and the report grossly misstated the funds held in escrow by Rood. The retirement Trust suffered a loss of over $750,000 as a direct result of Mallory’s participation in the fraud scheme.
This case is being investigated by the FBI’s Washington Field Office and is being prosecuted by Assistant United States Attorneys Michael E. Rich and Uzo Asonye.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.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.