Doris E. Nelson, Wire Fraud, Money Laundering, Washington 2014

Spokane Area Woman Sentenced to 108 Months for Wire Fraud and Money Laundering

Spokane – In a shocking turn of events, a Spokane area woman has been sentenced to 108 months in prison for her involvement in a massive wire fraud and money laundering scheme.

According to court documents, Doris E. Nelson, 55, of Colbert, Washington, operated a payday and short-term lending business called the Little Loan Shoppe, which began in British Columbia, Canada in 1997 and continued in Spokane, Washington beginning in 2001.

Nelson allegedly solicited hundreds of investors worldwide, promising them a 40% to 60% (and up to as much as 75%) annual return on their investments. However, rather than using investor funds to fund new customer loans, Nelson used the money to fund her own lavish lifestyle.

It is estimated that Nelson took in approximately $137 million from at least 650 investors worldwide over the course of eight years. Nelson used the proceeds to fund her own personal expenses, including approximately $223,000 in purchases from St. John Knits stores and $217,000 in purchases from Nordstrom.

Nelson’s scheme collapsed in 2008, when she abruptly announced that all investments would be changed to a 10% interest rate and ended most payments to investors. By February 2009, she suspended all payments. The scheme resulted in personal withdrawals of investor money totaling approximately $4.3 million.

Nelson pleaded guilty to 110 charges related to wire fraud, mail fraud, and international money laundering in April 2014. She was sentenced to 108 months in prison and three years of court supervision after her release. A restitution hearing will be scheduled within 90 days.

The case was investigated by the IRS-CI, the FBI, and the United States Attorney’s office. Nelson’s scheme is a stark reminder of the dangers of investment scams and the importance of doing your due diligence before investing your hard-earned money.

In a statement, United States Attorney Michael C. Ormsby said, ‘Nelson’s scheme is a classic example of a Ponzi scheme, where she used money from new investors to pay returns to earlier investors, rather than using it to fund legitimate business operations.’

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