Former pharmacist sentenced to federal prison for running a Ponzi scheme

Jessica Farrish, The Register-Herald, Beckley, W.Va.
·2 min read

Mar. 19—A former pharmacist will spend more than 11 years in federal prison for running a $2.5 million Ponzi scheme that targeted family and local residents, U.S. District Court of Southern West Virginia Judge Frank Volk ruled Thursday.

Volk ordered Natalie Cochran, 38, of Daniels, to report to prison to begin serving a 135 month sentence by May 1 or when the Bureau of Prisons contacts her, whichever date falls first.

The judge denied a request by Assistant U.S. Attorney Kathleen Robeson that Cochran immediately be placed in custody and taken to prison.

Cochran was arrested in September 2019 on 26 counts that included fraud, money laundering and bankruptcy fraud, all related to a Ponzi scheme that she said she and her husband cooked up that swindled $2.6 million from investors and financial institutions.

She and her late husband, Michael Cochran, owned Tactical Solutions Group (Tactical) and Technology Management Systems (TSM). Federal prosecutors allege that the couple talked family, friends and local residents into investing in Tactical, which they said had contracts to provide weapons to the U.S. Department of Defense. There were no contracts, according to federal prosecutors, and the couple spent the money on luxurious living.

Cochran's attorney, Rhett Johnson, asked that Volk sentence Cochran to less than the 135 months, which was the full prison sentence allowed under a plea agreement Cochran had reached with prosecutors in September. She pleaded guilty to one count each of wire fraud and money laundering and agreed to serve between 37 and 135 months in prison and to pay restitution to her victims of about $2.6 million.

U.S. attorneys said that Cochran had planned to steal $4.85 million.

After Michael Cochran's death in February 2019, according to statements made in court Thursday, Natalie had texted and sought out Dr. Dan Foley, a local orthodontist and businessman, in order to try to convince him to buy the two fake businesses.

She prepared extensive false documents, including financial statements, to trick Foley into paying her more than $4 million, Volk noted. Foley had sent just $50,000 before closing down negotiations.

The hearing, which had been continued from February, started one hour late as around 30 people waited. It lasted nearly four hours, and victims and Cochran spoke.

This is a developing story.