Army News, news from Iraq, - Army Times

Retired lt. col. gets 5 years in embezzlement

MONTGOMERY, Ala. — A retired Army lieutenant colonel has been sentenced to five years in federal prison for embezzling more than $940,000 from the Auburn University chapter of Alpha Tau Omega fraternity while serving as its adviser and treasurer.

Retired Lt. Col. Loyd Frank Lawing Jr., 53, also embezzled nearly $100,000 in Small Business Administration disaster funds related to the Sept. 11, 2001, terrorist attacks, a prosecutor said.

Lawing, who taught military science at Auburn, his alma mater, remains free pending a prison reporting date.

U.S. Attorney Leura Canary in Montgomery announced Lawing’s 63-month sentence Wednesday, noting it’s the longest sentence in the country for a fraud case involving SBA 9/11 disaster relief loans.

“His abuse of trust was reprehensible,” she said in a statement.

Lawing pleaded guilty in August to tax evasion and fraud and agreed to pay restitution of at least $1.35 million to victims, including over $300,000 to the Internal Revenue Service.

After his release, Lawing will serve three years of probation and be required to serve 120 hours of community service.

He faced up to 20 years in prison for his offenses and an additional fine of up to $250,000.

The fraternity closed shortly after Lawing was charged with embezzling nearly all of its funds from June 2000 to July 2005. The funds came from the July 19, 2002, sale of the fraternity house.

The fraternity has returned to campus and had 74 members last spring.

According to prosecutors, Lawing spent the fraternity’s money on personal expenses, including a home and luxury vehicles. He started an aerospace business, Bold Horizons, and after the 9/11 attacks, claimed it was affected by the attacks.