Edward O. Yoder, Bankruptcy Fraud, Virginia 2016

NORFOLK, Va. – A former CEO of Monarch Mortgage in Virginia Beach has been sentenced to two years in prison for concealing $350,000 in bankruptcy assets.

Edward O. Yoder, 50, of Virginia Beach, pleaded guilty to bankruptcy fraud on October 12, 2016. He was also ordered to pay $364,660 in criminal restitution, according to a sentencing by U.S. District Judge Raymond A. Jackson.

Yoder, the former president and CEO of Monarch Mortgage, which is a part of Monarch Bank in Virginia Beach, obtained two loans totaling $3 million in 2008 and 2009 for a planned residential community in North Carolina. However, the project failed, and Yoder filed for Chapter 11 bankruptcy protection in July 2011, as he was facing two lawsuits in Virginia Beach Circuit Court.

Yoder’s initial Chapter 11 bankruptcy filing listed $2.74 million in assets, including approximately 133,000 shares of stock in Sirius XM Radio. However, Yoder failed to disclose the sale of his Sirius stock, which he discreetly sold in October 2012 for approximately $350,000. The money was then wired to his Monarch bank account and transferred to his girlfriend’s Monarch account, Susan Spearman.

Spearman concealed the $350,000 in her account until after Yoder filed his Chapter 7 petition on December 5, 2012. Two weeks later, Spearman transferred the $350,000 from her account to her brokerage account with Infinex Financial Group, Virginia Asset Group. The money was then disbursed with bank checks over $310,000 from Spearman’s brokerage account, for Yoder’s own benefit and for the benefit of his parents and children.

The investigation was conducted by the FBI’s Norfolk Field Office, with Assistant U.S. Attorney Stephen W. Haynie prosecuting the case. Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, said, ‘Bankruptcy fraud is a serious crime that undermines the integrity of our financial system.’

A copy of the press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-83.

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