Julius Everett ‘Bud’ Johnson, Investment Fraud, Virginia 2011

Richmond businessman Julius Everett ‘Bud’ Johnson was sentenced to 97 months in prison for his role in an investment scheme that caused millions of dollars in losses.

Johnson, 62, a resident of Richmond, Va., was sentenced on September 29, 2011, by U.S. District Chief Judge James R. Spencer after pleading guilty on April 11, 2011, to one count of conspiracy to commit mail, wire and bank fraud and one count of engaging in unlawful monetary transactions.

The case was investigated by the IRS-CI, FBI, and the Virginia State Corporation Commission Bureau of Insurance. The prosecution was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force.

According to court filings, from prior to July 2009 until at least March 2010, Johnson owned and operated several businesses based in Richmond, including Virginia Group Benefits (VGB); Mid-Atlantic Insurance (MAI); F.I.C. Financial Group Inc.; Benefit Contractors Administrators Inc. (BCA); River City Cleaners LLC; Roberts Awning LLC; Norvell Awning LLC; MHC Linen Services LLC; The Everett Group; and Living Well. Johnson and his coconspirator offered investments in the different businesses, generally including a promise of returns of up to 10 percent within one to four years.

Johnson and his coconspirator represented to potential investors that their investment funds would be funneled directly into specific companies, which would generate the returns on investment. Instead, a significant portion of the invested funds was used to repay other investors and to cover operating costs for unrelated businesses.

A hearing will be held before Judge Spencer in Richmond on September 29, 2011, to determine the amount of restitution, which, according to the plea documents, is currently estimated to be approximately $8.9 million.

The case was prosecuted by Trial Attorney Kevin B. Muhlendorf of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mike Gill of the Eastern District of Virginia.

Johnson’s sentence is a result of his involvement in an investment scheme that caused millions of dollars in losses. His actions demonstrate the importance of holding individuals accountable for their crimes and ensuring that victims receive the restitution they deserve.