Embezzler who stole $90,000 charged with parole violation in Staunton after payments stall

STAUNTON — Linda K. Nelson was described as a "master manipulator" at her sentencing hearing several years ago in Staunton.

She'd embezzled $90,000 from an elderly war veteran while he was in a nursing home and promptly gambled away the entirety of the sum.

Jailed briefly following her conviction, the Staunton Commonwealth's Attorney's Office didn't ask much of Nelson, ordering her to pay $25 per month to the victim and then to his estate after he died at the age of 92.

Nelson, though, has made little restitution and only managed to fork over $300 in the last three years as her restitution payments became sporadic, court documents allege, resulting in the 72-year-old's arrest last week on a probation violation.

The prosecutor's office noted it only expected to recoup roughly $25,000 during Nelson's expected lifespan, but her payments so far have barely made a dent in the restitution.

The case against Nelson

Evidence showed that Nelson had known William "Pete" Floyd for about 10 years prior to her arrest in 2017. Floyd, of Staunton, served in the Air Force during the Korean War and was a Virginia High School League official for 40 years. He also worked for the United States Postal Service, according to his obituary, and was active with the Staunton-Augusta YMCA beginning in the 1980s and once served as its interim executive director.

Floyd died at the age of 92 in 2021.

At Nelson's 2017 trial, evidence showed she got ahold of the money in December 2016 and went through the entire sum in one month while Floyd, 87 at the time, was temporarily placed at Kings Daughters Community Health and Rehabilitation Center in Staunton.

At the trial, Floyd testified Nelson told him the nursing home might make him pay out-of-pocket for his stay, and said she convinced him to write a $90,000 check that she would hold onto for safekeeping. One day after being admitted, and learning his expenses were going to be covered, Floyd said he asked for his money back but Nelson told him she'd left her checkbook at home.

Floyd said he tried calling Nelson several times but could never reach her. When he was finished rehabbing, he said he went to Nelson's home and again asked her about the money. That's when Nelson claimed he'd given her the money free and clear.

"Well, that stunned me," Floyd said in court.

Questioned by authorities about the money, a recording played at the trial showed Nelson was adamant the money was hers and not stolen. "He said it was mine," she said on the recording. "I didn't embezzle nothin'."

Nelson claimed she spent the cash but couldn't produce any receipts when questioned by an investigator with the Staunton Police Department.

The prosecutor at the time believed Nelson gambled the money away at a West Virginia casino.

There was evidence that Floyd helped Nelson financially in the past, although it was done voluntarily, including helping her purchase a mobile home by giving her $40,000. His family, though, said Nelson received much more.

Nelson, who now resides in Raphine, was convicted of embezzlement following a bench trial. Her attorney said at the sentencing hearing that Nelson was broke. She was ordered to pay $25 per month in restitution after serving six months in jail.

Arrested April 15

Authorities arrested Nelson last week on April 15, charging her with a probation violation for failing to pay her restitution. According to court records, she made just five $25 payments in 2022, six payments in 2023, and so far this year has managed just one payment, resulting in the violation.

"Ms. Nelson's payments have been very inconsistent," a probation and parole report said.

She still owes $88,885, court records show.

Cathy Sterrett, Floyd's daughter, said her children had once hoped to start a scholarship fund at the Staunton-Augusta YMCA with Nelson's monthly payments.

"The Y was very dear to his heart," Sterrett said of her father. "It’s a shame he didn’t invest in that instead of a scam artist."

Nelson remains free on a $2,500 bond. A court date for the probation violation charge has yet to be set.

Brad Zinn is the cops, courts and breaking news reporter at The News Leader. Have a news tip? Or something that needs investigating? You can email reporter Brad Zinn (he/him) at bzinn@newsleader.com. You can also follow him on X (formerly Twitter).

Although Virginia's sentencing guidelines, which are not binding, called for a probationary sentence with no incarceration, Circuit Judge Charles Ricketts III sentenced Nelson to 10 years in prison with 9 1/2 years suspended, giving her six months to serve in Middle River Regional Jail.

The judge also placed her on five years of probation and ordered Nelson to repay $90,000 to the victim. However, the prospect of him recouping that amount anytime soon doesn't look promising.

"She has no funds," said Thomas Weidner IV, her attorney.

Weidner was brought on to represent Nelson after she lost her court case last year. Following the guilty verdict, her trial attorney admitted to making some mistakes, and Weidner's fee was paid by Nelson's former attorney as he was brought on to represent her.

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The two had known each other for about 10 years when Nelson was arrested.

At her trial, Welsh labeled Nelson a "master manipulator."

After Tuesday's sentencing hearing, Welsh, who sought prison time for Nelson, said she isolated Floyd from his family in an effort to embezzled his funds.

"I'm thrilled we had a conviction with active time," he said.

Nelson had no prior felony convictions.

Sentencing was delayed several times for motions filed in the case, along with a paperwork snafu after Nelson didn't fill out a pre-sentence report. Another sentencing hearing was postponed earlier this year after Weidner became ill.

"Mr. Floyd has waited a long time for justice," Welsh said.

STAUNTON — A judge on Friday convicted a Waynesboro woman of stealing $90,000 from a war veteran last year while he was in a nursing home.

Linda K. Nelson, 66, faces a maximum of 20 years in prison when sentenced Jan. 11 on a charge of embezzlement.

Nelson claimed she was given the money.

Taking the stand Friday, Campbell said Nelson never produced the receipts.

But evidence also showed that in a will, Floyd, a Korean War vet, left Nelson his Veteran's Affairs disability payments upon his death, which was about $95,000. He also helped her purchase a mobile home by previously giving her $40,000.

Staunton Assistant Commonwealth's Attorney Daniel Welsh labeled Nelson a "master manipulator."

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Delivery: Dailybzinn@gannett.comYour EmailFloyd testified that Nelson told him the nursing home might make him pay out-of-pocket for his stay, and convinced him to write a $90,000 check that she would hold on to for safekeeping. One day after being admitted, and learning his expenses were going to be covered, Floyd said Nelson was visiting him on Dec. 2 when he asked for the money. Floyd said Nelson told him her checkbook was at home.

After that visit, Floyd said he tried calling Nelson several times but could never reach her.

When he was finished rehabbing, Floyd said he went to Nelson's Waynesboro home later in December and again asked her about the money. He said Nelson claimed he'd given her the money free and clear.

"Well, that stunned me," Floyd said in court.

Throughout the morning, Nelson frequently gestured with her arms during the testimony of various witnesses, shook her head at courtroom onlookers and at one point was overheard muttering, "What a lie." Finally, Judge Charles Ricketts III halted the trial for several minutes and told Nelson's defense attorney, Bruce Tyler, to have a word with his client.

During the trial, Tyler alluded to a possible romantic relationship between Nelson and Floyd. The Staunton man vehemently denied he was ever involved with his caregiver.

"Love never entered the picture," said Floyd, whose wife died in 2003. "I liked her."

Nelson and Floyd, who has some short-term memory loss, have known each other for at least 10 years, testimony showed, after being introduced by a mutual friend.

Following the guilty verdict, the prosecutor praised the work of Adult Protective Services and the Staunton Police Department.

"That's what made this case," he said.

This article originally appeared on Staunton News Leader: Embezzler who took $90,000 hit with probation violation in Staunton