Congressman Alan Grayson Loses $18 Mil in Ponzi Scheme
Just a reminder that being a raving and drooling anti-capitalist can be exceedingly beneficial to one's net worth.
December 10, 2013 - 11:00 am
“Controversial House Democrat Alan Grayson lost $18 million as part of a criminal scheme run by a Virginia man that bilked more than 100 investors out of more than $35 million, according to federal court documents,” the Politico reports:
William Dean Chapman, 44, of Sterling, Va.,was sentenced to 12 years in federal prison on Friday. Chapman pled guilty to one count of wire fraud in May, according to the U.S. Attorney’s office for the Eastern District of Virginia, which oversaw the case.
Chapman was the founder and owner of Alexander Capital Markets. Customers would give their stock holdings to Chapman as collateral for loans. Chapman then improperly sold the stocks, despite assuring the customers that they would get back the full value of their holdings.
An unnamed elected official named “A.G.” was identified as having lost more than $18 million in what was essentially a Ponzi scheme run by Chapman.
After Chapman tried to withdraw his guilty plea at the last minute, federal prosecutors submitted a document that included Grayson’s name as part of their legal response to Chapman’s move.
“Don’t worry, Floridians. He’ll be much more careful with your money,” the American Glob quips.
Politico adds that “According to his most recent annual financial disclosure report on file with the House of Representatives, Grayson has a minimum of $22.8 million in assets, as well as at least $5 million in liabilities,” Based on the Politico article, I’m not sure if the net worth they quote is before or after losing $18 mil in a Ponzi scheme. In any case, just a reminder that being a raving and drooling anti-capitalist can be exceedingly beneficial to one’s net worth.
And Grayson reportedly being duped by a Ponzi scheme is very reminiscent of the reports of Bernie Madoff’s victims, many of whom were fellow elitist far left Obama supporters — and the president himself has much in common with Madoff:
Mr. Madoff, like Mr. Obama, only took money from rich people, fat cats, millionaires, evil private jet owners, those that can afford to get bilked. Both have account minimums, a status symbol used to create the illusion that only the select elite will be allowed to participate. In Obama’s case, it seems to be around $250,000 (for a couple, but only $125,000 for an individual filer) Madoff’s, reportedly, was a cool million.
Obama and Madoff both like to hob-knob with the rich, famous, and influential of society, maintaining social networks that would put Donald Trump to shame. Their legendary early results spread like a virus among the privileged few.
Madoff devastated charities that had trusted him for his legendary investment prowess. President Obama will devastate charities with his proposal to vanish charitable tax deductions for the well-healed.
The major difference? One is behind bars, and one is still actively employed, planning new types of schemes to solve such “perceived” problems as global warming and economic inequality. The road to hell is paved with good intentions.
Madoff and Obama both held prestigious positions, enhancing their credibility prior to their meteoric rise to power. Madoff was the head of the NASDAQ (now FINRA), Obama was a junior senator from the squeaky-clean State of Illinois. Everyone knows that if you can’t trust a Chicago politician, who can you trust?
That’s the burning question, isn’t it?
— Dave Levinthal (@davelevinthal) October 22, 2013
It is the second time the congressman has been the victim of a fraudulent investment scheme: He won $34 million after suing Derivium Capital, a company running pretty much the same scheme as Chapman. Grayson told the AP he invested with Chapman before he invested with Derivium, and hence he did not yet have any reason to view the investment as suspect.
How do you stumble into a Ponzi scheme twice?