A former Eastville police officer has pleaded guilty to defrauding 13 people out of more than $831,000 to fund his gambling habit, according to federal prosecutors.
Keith Brady pleaded guilty to one count of money laundering and one count of wire fraud in federal court.
Federal prosecutors say Brady convinced victims to loan him money by falsely claiming he was expecting a large inheritance and would pay them back.
The scheme involved 33 separate transactions, with most of the money never being repaid, according to prosecutors.
Watch previous: Brady previously pleads not guilty to charges
They say Brady targeted friends, acquaintances and colleagues for the loans.
"Brady used the money for himself and various expenses. Most of the money Brady gambling at casinos or through online sports betting apps. Brady also spent vast sums gambling at the 'skill' machines located in gas stations on the Eastern Shore in Virginia," court records state.
It states one victim was a friend Brady worked with and grew up with.
Some of the victims even had Brady sign a written contract or promissory note agreeing that he would repay the monies but when that date came and went – he’d claim that he needed more money, records state.
The town of Eastville confirmed Monday that Brady is no longer employed by the town.
Watch previous coverage: Brady arrested on money laundering, wire fraud charges
"The charges currently involving Mr. Brady are personal in nature and are not related to his professional duties or employment with the Town of Eastville. The Town remains committed to transparency and integrity in all personnel matters. No further comment will be provided at this time," the town said in a statement.
Former Eastville Police Chief Linwood Christian said federal agents interviewed him about Brady last January.
"I never loaned Keith Brady a dime or would I ever loan him a dime," Christian said.
Christian recalled a conversation with a former coworker about lending Brady money. He said the victim was under the impression Christian lent Brady money.
"I said absolutely not, please tell me you didn't lend him anything. His face turned white as snow, and he sat down on the couch and said I gave him $9,000 yesterday," Christian said.
Brady is scheduled to be sentenced on February 19.
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