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Grayson Lost $18M In Stock Swindle (Again!)

From an irony proof Associated Press:

Fla. congressman lost $18M in scheme

By MATTHEW BARAKAT | December 9, 2013

McLEAN, Va. (AP) — U.S. Rep. Alan Grayson of Florida lost $18 million in a scheme that cheated him and about 120 other investors out of more than $35 million, according to court papers.

Funny how Grayson’s party affiliation is not mentioned in the headline or lead.

The Virginia man who ran the scheme, William Dean Chapman, was sentenced Friday in federal court to 12 years in prison. Prosecutors say Chapman used the money to fund a lavish lifestyle including a Lamborghini, a Ferrari and a $3 million home.

In most of the court papers, Grayson’s identity is protected — prosecutors say only that an elected official with the initials A.G. was the primary victim — but documents twice mention Grayson by name.

Why should Grayson’s name be protected?

The Democratic congressman on Monday confirmed he is the A.G. mentioned in the documents.

Nothing in the court papers suggests Grayson was anything but a victim of the scheme. Grayson, a former trial attorney, said he has had a long record for picking winning stocks, which formed the basis for his personal fortune…

And, of course, until April of this year Congressmen could engage in insider trading with impunity. In fact, some say they still can.

It is not the first time Grayson, who represents parts of the Orlando area, has lost tens of millions of dollars in a fraud scheme. In 2009, he won a $34 million judgment after filing a lawsuit in South Carolina under federal racketeering laws against a company called Derivium Capital. Derivium’s business plan for hedging an investor’s stock profile was nearly identical to the plan outline by Chapman.

Grayson said he first entered into deals with Chapman in 2003, well before the deal with Derivium went south, so he had no reason to be suspicious the arrangement.

How does the saying go? ‘Fool me once, shame on you. Fool me twice, I must be a Democrat.’

Grayson… is generally listed as one of the 20 wealthiest members of Congress with assets of more than $20 million.

Which surely doesn’t stop him from railing against ‘Wall Street fat cats’ and ‘income inequality.’

His financial disclosure forms list holdings in dozens of stocks. His dealings with Chapman preceded his time in Congress, which began in 2009…

And he surely hasn’t ever used his Congressional information to play the market.

This article was posted by Steve Gilbert on Tuesday, December 10th, 2013. Comments are currently closed.

One Response to “Grayson Lost $18M In Stock Swindle (Again!)”

  1. Wa-hahahaha

    .. him and the horse he rode in on ..




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