Former AU professor sentenced in fraud case

By WRBL Staff

Published: February 5, 2008

A former Auburn University professor faces the longest sentence issued for a case involving fraud of 9/11 disaster relief funds in the nation.

On Tuesday, United States Attorney for the Middle District of Alabama Leura G. Canary said Loyd Frank Lawing Jr., 53, will serve 63 months in federal prison without parole for singlehandedly embezzling nearly $100,000 in 9/11 disaster funds from the Small Business Administration, and more than $940,000 from Auburn’s chapter of Alpha Tau Omega.

During the sentencing hearing, United States District Judge Myron Thompson enhanced Lawing’s sentence because of the amount of money stolen, the number of victims involved and the sophisticated means by which the fraud was executed. The judge also considered how Lawing abused his fiduciary responsibilities to ATO and the SBA.

“His abuse of trust was reprehensible,” Canary said. “Mr. Lawing’s sentence should serve as a warning to anyone else who is tempted to use their position to steal.”

Besides the prison sentence, Lawing is required to pay nearly $1 million to the local fraternity chapter, nearly $100,000 to the SBA and more than $300,000 to the IRS. Upon his release, Lawing will be required to perform 120 hours of community service and be supervised by the U.S. Probation Office for three years.

This case is the result of a year-long investigation involving the Auburn Police Division, the IRS’s Criminal Investigation Division and SBA’s Office of Inspector General, Investigations Division. Additional assistance was provided by Lee County District Attorney Nick Abbett. The case was prosecuted by Assistant United States Attorney Christopher A. Snyder.