SIMI VALLEY : Ex-Officer Indicted in Pyramid Scheme

A former Simi Valley police officer was indicted Wednesday for allegedly taking part in an illegal scam that has already resulted in the conviction of one of his former colleagues, prosecutors said.

A Ventura County grand jury charged Raymond Madden, a seven-year veteran, with a felony count of operating an illegal pyramid scheme. Madden resigned from the force last month and moved to Pennsylvania.

Deputy Dist. Atty. James D. Ellison said that Madden has promised to return to Ventura County and prosecutors have agreed to delay his arraignment until next month. He faces up to three years in state prison if convicted.

Another officer who resigned because of the scam, Michael Cratch, pleaded no contest to the same charge Monday. Two other officers also have resigned, but Ellison said he does not expect them to be indicted.

“There just wasn’t enough evidence,” he said.

Meanwhile, Simi Valley Police Sgt. Bob Gardner said the department’s internal investigation into the scam continues. Grand jury transcripts show that at least 15 officers knew about the scam, which requires members of the pyramid to continually recruit new participants to invest in the scheme.

Five other men were convicted of misdemeanor charges in connection with the pyramid scheme.