Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, March 21, 1990 TAG: 9003212228
SECTION: VIRGINIA PAGE: B1 EDITION: METRO
SOURCE: Laurence Hammack Staff Writer
DATELINE: LENGTH: Medium
Larry B. Scott, 47, received the term in Roanoke Circuit Court.
Although Scott pleaded no contest earlier to embezzling about $50,000 from five clients, prosecutors contended the actual amount was about $290,000 taken from 19 people.
Most of the victims were friends who had admired Scott and trusted him to handle their insurance policies and investment plans, Chief Assistant Commonwealth's Attorney Betty Jo Anthony said.
Scott, a former Sunday school teacher and vice president of the Roanoke Jaycees, testified that he turned to embezzlement in an attempt to pay off a large debt he had incurred through several bad investments.
"It was not my intention to keep the money," Scott told Circuit Judge Diane Strickland. "I promise you that every dollar will be paid back."
Since he was charged last summer, Scott has worked as a laborer on a construction site. He brought to court his savings to date - a check for $5,000 - to offer as restitution.
But Anthony pointed out that Scott was living a more than comfortable lifestyle during the time he claimed financial hardship led him to embezzle from friends.
"During the same period of time that you were stealing $290,000, you were also living in a $200,000 home, driving new cars, going on cruises with your wife and giving parties for your friends, weren't you?" she asked Scott.
"Yes," he responded.
Scott said he was so overcome by guilt that he once considered suicide so his family and policyholders could benefit from his $2 million life insurance policy.
Scott admitted that he embezzled close to $300,000. After he was charged last summer with taking about $50,000, prosecutors struck a deal in which they promised not to file additional charges in exchange for his cooperation.
"If it hadn't have been for the friendships and business relations that I had with these people, I would not have been able to take their money," Scott testified.
"It's been especially tough since you folks placed your trust in me as close friends," Scott said as he turned in the witness stand to face some of his former policyholders who attended the hearing.
While some policyholders have been repaid by insurance companies, at least $80,000 remains to be paid.
Prosecutors have said Scott often befriended people at his church and then took their money for insurance policies and investment programs to be handled by his independent business, Scott Insurance.
But the money was never invested for those purposes, as Scott used it to pay off debts he had made from previous bad investments.
The embezzlement scheme ran from April 1985 to August 1988.
After one of Scott's clients discovered that an insurance policy he had paid for was not in effect, four victims confronted Scott last spring at his office at the Patrick Henry Hotel.
Scott gave the four people receipts for the amounts he owed them and promised to make good. But after he failed to pay them back, the policyholders reported the incident to police.
FOR THE RECORD: CORRECTION: THURSDAY, MARCH 22, 1990
Because of a reporter's error, a story in Wednesday's editions incorrectly states the Jaycees branch affiliation of Larry B. Scott, a Roanoke insurance agent sentenced to five years in prison for embezzlement. He was the former vice president of the Cave Spring Jaycees.
Memo: correction