The two executives of a Utah-based "charity" that promised "free" fitness equipment to hundreds of school districts across the nation - including Nevis - have been sentenced.
US District Judge Joan Erickson sentenced Cameron J. Lewis, 36, to 17 years in prison for his role as head of the pyramid scheme. His father, J. Tyron Lewis, 65, was sentenced to five years, eightmonths. They also must pay $39 million in restitution.
The Lewises were convicted a year ago on five counts of mail fraud, nine counts of wire fraud, one count of bank fraud and one count of conspiracy to launder funds. Cameron Lewis was also convicted on a money-laundering charge.
According to evidence at trial, the defendants defrauded more than 600 schools and dozens of banks across the nation of more than $60 million by promising free fitness equipment.
The Lewises assured school districts that loans would be repaid from government grants and private donations.
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In reality, the schools that got in early were reimbursed with payments of those who signed up later.
Nevis School acquired a loan of $221,940 to finance the equipment when it was purchased in 2004. Currently, $145,594 of the loan amount remains, superintendent Steve Rassier said. It's scheduled to be satisfied in May 2014. Monthly payments are $2,275.
The district budgets $9,500 in annual revenues from fitness center memberships; the annual loan payment totals $27,300.
Rassier said he doubts the district will see any of the $39 million restitution.
The facility, he said, was overpriced, "probably more than the district would have agreed to spend. But it's a wonderful facility, available to kids and the community," he said.
The center serves as a classroom for kids, utilized by health and phy ed classes and athletic teams. Students strive for fitness on an individual basis, and are made aware of their progress.
The fitness center, which will be qualified as a provider by Blue Cross/Blue Shield in January, is open on a card key basis to the community 24 hours a day, when school is not in session.
Those insured by Blue Cross who purchase a membership, work out a specified number of times, as determined by the policy, and submit the information will qualify for a rebate, Rassier explained.
