Former Monarch Mortgage executive arrested on bankruptcy fraud charge

NORFOLK, Va. (WAVY) — Edward ‘Ted’ Yoder, a former CEO and President of Monarch Mortgage, was arrested by federal authorities Thursday morning at his home in Virginia Beach on a bankruptcy fraud charge.

Yoder is accused of devising a scheme to defraud his creditors of $339,660, according to federal court documents. He was released Thursday afternoon on a $5,000 unsecured bond.

Yoder faces one count of bankruptcy fraud, two counts of concealment of assets, two counts of false declarations and one count of forfeiture.

The documents allege that while Yoder was undergoing bankruptcy proceedings in 2012, he cashed in Sirius stock and had $339,660 wired to an account belonging to Susan M. Spearman. WAVY.com has confirmed Spearman was Yoder’s girlfriend at the time.

Documents allege that Spearman then transferred the funds back to Yoder’s accounts.

Spearman pleaded guilty in May to a charge of federal bankruptcy fraud for her role in the scheme.

As part of his release, the judge also ordered Spearman to undergo mental health and substance abuse treatment. In April of 2016, Yoder was arrested on a misdemeanor charge of being drunk in public.

Brad Schwartz, the current CEO of Monarch Bank and Financial Holdings, Inc., released a statement Thursday, which reads in full:

Although Ted Yoder was the President and CEO of Monarch Mortgage from 2007-2011, he has not worked with the company since then.  We have no further comment on the charges filed against him today, which are unrelated to his service with Monarch.”

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