May 15, 2012
A Nevada woman has pleaded guilty in Richmond to participating in a college savings scam.
Sixty-one-year-old Linda Palmer Taylor of Henderson, Nev., faces up to 20 years in prison after pleading guilty in federal court Monday to wire fraud conspiracy. Sentencing is set for Aug. 16.
According to court papers, Taylor and Edward Menster of Henrico County sold about $1.6 million in annuities to investors through two companies, College Funding Associates and College Dream Foundation, that claimed to help families secure college financial aid. They lied to investors about the security of the funds, which they used for their own gain, for other businesses and to pay earlier investors in a Ponzi-like scheme.
Menster previously pleaded guilty to wire fraud conspiracy and was sentenced to four years, 10 months.