SIMI VALLEY : 3 Officers Suspected in Scheme Resign

Three additional Simi Valley police officers suspected of participating in a pyramid scheme have resigned, bringing the total to four.

Officer Michael Cratch, 24, who had been on the force for three years, resigned Wednesday afternoon, said Lt. Tony Harper, the department spokesman

Last week, Officer Matt McCord, 30, who served on the force for more than six years, and Officer Matt Hopkins, 24, a five-year veteran, both resigned, Harper said.

The three join fellow Officer Raymond Madden, 30, another five-year veteran who resigned Sept. 17. Madden is under investigation, along with McCord and Hopkins, for alleged participation in the pyramid scheme, which investigators say was called “The Money Tree.”

Cratch faces a Nov. 20 trial date on a felony charge of operating an illegal pyramid scheme. Harper would not comment further on the case because it involves personnel matters.

Prosecutors from the district attorney’s office contend that Cratch and the other officers were part of a so-called “endless chain scheme.”

Participants in the scheme made an initial $1,000 “investment” and then went out to recruit others, prosecutors say. The money from the new recruits went to pay off the initial investors, but when others could not be found to play the money game, the rest of the participants lost their money.

Two other men involved in the pyramid scheme admitted to a misdemeanor earlier this month and will be sentenced Oct. 26.

The department began an internal investigation earlier this month. Results from that investigation are not expected until November, police sources said.