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Florida Democratic congressman (Grayson) loses $18 million in (Ponzi) scheme
Fox News ^ | December 9, 2013

Posted on 12/09/2013 7:20:53 PM PST by Zakeet

Florida Democratic Rep. Alan Grayson lost $18 million in a scheme by a Virginia man that involved over a 100 victims, the congressman’s office confirmed Monday.

[Snip]

The scheme worked like this: clients would turn over their stocks to Chapman as collateral for a loan, and Chapman would let customers borrow about 90 percent of the stocks' value.

If the stocks did badly, borrowers could walk away and keep the money they were loaned. But if the borrowers' stocks did well, they would repay the loan with interest, and Chapman was supposed to return the stocks to the investor at their increased value.

But, according to court papers, Chapman sold the stocks and had no way to fulfill his obligations if a client's stock portfolio did well.

(Excerpt) Read more at foxnews.com ...


TOPICS: Crime/Corruption; News/Current Events; US: Florida
KEYWORDS: alangrayson; diequickly; economy; fraud; grayson; madliberals; ponzi; ponzischeme

... busy thinking of a way to get taxpayers to pay him back ...

1 posted on 12/09/2013 7:20:53 PM PST by Zakeet
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To: Zakeet

Did G)D punish him for lying?


2 posted on 12/09/2013 7:22:10 PM PST by realcleanguy
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To: Zakeet

Karma..isn’t it awesome


3 posted on 12/09/2013 7:23:00 PM PST by Sarah Barracuda
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To: Zakeet

It’s easy to scam a crook!!


4 posted on 12/09/2013 7:23:10 PM PST by SWAMPSNIPER (The Second Amendment, a Matter of Fact, Not a Matter of Opinion)
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To: Zakeet

It couldn’t have happened to a nicer guy. LOL!


5 posted on 12/09/2013 7:23:19 PM PST by FlingWingFlyer (If you think signing up for ObamaCare was fun, wait until you try to use it.)
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To: Zakeet

He looks like a weasel.


6 posted on 12/09/2013 7:24:01 PM PST by Mark17 (Chicago Blackhawks: Stanley Cup champions 2010, 2013. Vietnam Veteran, 70-71)
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To: Zakeet

How did that moron get that much money to begin with?

Not at all surprising that he got it swindled from him. But I’m shocked to learn that he had it to lose.


7 posted on 12/09/2013 7:25:33 PM PST by RugerMini14
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To: FlingWingFlyer

ditto!


8 posted on 12/09/2013 7:25:44 PM PST by reg45 (Barack 0bama: Implementing class warfare by having no class.)
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To: Zakeet

Die quickly, Grayson!


9 posted on 12/09/2013 7:25:52 PM PST by citizen (There is always free government cheese in the mouse trap.....https://twitter.com/kracker0)
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To: Zakeet

Who was it that said you can’t cheat an honest man?


10 posted on 12/09/2013 7:27:55 PM PST by Harmless Teddy Bear (Proud Infidel, Gun Nut, Religious Fanatic and Freedom Fiend)
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To: Sarah Barracuda

As awesome as poetic justice.


11 posted on 12/09/2013 7:28:05 PM PST by Olog-hai
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To: Zakeet

*giggle* snort* snicker*


12 posted on 12/09/2013 7:28:51 PM PST by Cololeo
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To: Zakeet

“MY PORK IS GONE!”


13 posted on 12/09/2013 7:30:02 PM PST by Cicero (Marcus Tullius)
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To: Zakeet

Where did he get 18 million ?


14 posted on 12/09/2013 7:30:29 PM PST by molson209 (Hillary Clinton)
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To: Zakeet

15 posted on 12/09/2013 7:30:33 PM PST by fso301
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To: Zakeet

A financial scam depends upon the greed of the mark.


16 posted on 12/09/2013 7:31:39 PM PST by AU72
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To: Zakeet

This moron needs to be audited to ensure he lost the full 18M. I can easily see this scum scamming the IRS for a few million to save a few million in taxes.


17 posted on 12/09/2013 7:32:59 PM PST by SgtHooper (If at first you don't succeed, skydiving is not for you.)
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To: molson209

I wonder, since leftists hate rich people, and Grayson has 18 mil to just blow on ponzi schemes, will the progressive left demand that Grayson pay his “fair share” I bet if they do Grayson will demand that they “Die quickly”


18 posted on 12/09/2013 7:35:46 PM PST by Sarah Barracuda
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To: Zakeet

Unpossible. He’s one of the 99% who are oppressed by the man.


19 posted on 12/09/2013 7:36:20 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Zakeet
No honor among thieves?
20 posted on 12/09/2013 7:36:52 PM PST by Huskrrrr
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To: Zakeet

Sounds like someone was a little too GREEDY.


21 posted on 12/09/2013 7:37:54 PM PST by PGR88
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To: Sarah Barracuda

Couldn’t think of a more deserving recipient.


22 posted on 12/09/2013 7:41:50 PM PST by onona (The Earth is the insane asylum for the universe (yup, I belong))
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To: Olog-hai

Schadenfreude. Glorious schadenfreude.

This man is one of the biggest pigs in the history of our government IMHO. How much of his 18 million came from his slush fund when he lost his seat previously?


23 posted on 12/09/2013 7:41:52 PM PST by volunbeer (We must embrace austerity or austerity will embrace us)
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To: Zakeet

Grayson has been a supposed “victim” in two similar investment frauds, that’s just too much co-incidence for me

also, i don’t buy that Grayson is a stock picking whiz, any more than i accept that hillary clinton is a cattle futures genius. He is claiming he had big stock gains, even in 2008 - liar ! impossible with a long only stock strategy, everything went down

he also doesn’t seem that upset - people are usually emotionally devastate by this kind of fraud.

i don’t think we have seen the end of this story.


24 posted on 12/09/2013 7:47:49 PM PST by Reverend Wright ( FORWARD !)
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To: Zakeet
That's a lot of money to lose in his social security. That IS the Ponzi scheme this article refers to isn't it ?
25 posted on 12/09/2013 7:48:41 PM PST by builder (I don't want a piece of someone else's pie)
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To: RugerMini14
How did that moron get that much money to begin with?

<>Just like Mayor Daley from Chicago did, he took his lunch to work.

26 posted on 12/09/2013 7:48:44 PM PST by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: Zakeet

He looks like that dead cross-dresser, “Divine.”

Creepy. Glad he lost the money, the scammer.


27 posted on 12/09/2013 7:49:06 PM PST by ConservativeMind ("Humane" = "Don't pen up pets or eat meat, but allow infanticide, abortion, and euthanasia.")
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To: Zakeet

An honest, middle-class, for the working man, liberal Democrat had $18 Million to lose? How is that possible? Yes, sarcasm.


28 posted on 12/09/2013 7:50:46 PM PST by cdcdawg (Be seeing you...)
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To: SWAMPSNIPER
It’s easy to scam a crook!!

Or a lunatic infected with predicate thinking. (see Congressnut Grayson's recent smear of the Tea party with the KKK.)

29 posted on 12/09/2013 7:56:34 PM PST by Stepan12
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To: volunbeer
Schadenfreude, it's what's for breakfast."

Michelle Malkin

30 posted on 12/09/2013 7:58:29 PM PST by Stepan12
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To: Zakeet

Couldn’t happen to a nicer @$#%&!


31 posted on 12/09/2013 8:00:10 PM PST by headstamp 2 (What would Scooby do?)
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To: Zakeet
Wait! Are they saying Grayson was trying to make a profit?
32 posted on 12/09/2013 8:01:08 PM PST by EDINVA
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To: Zakeet

TARGET HIM!


33 posted on 12/09/2013 8:01:36 PM PST by Viennacon
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To: Zakeet

Couldn’t happen to a nicer and more deserving guy.....


34 posted on 12/09/2013 8:51:40 PM PST by Intolerant in NJ
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To: Zakeet

Well, well, well...

Couldn’t happen to a “nicer” guy. Suck on it, you psycho.


35 posted on 12/09/2013 8:51:46 PM PST by ScottinVA (Obama is so far in over his head, even his ears are beneath the water level.)
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To: Zakeet

If Chapman ran for Grayson’s seat, I’d vote for him.


36 posted on 12/09/2013 9:21:02 PM PST by OrangeHoof (Howdy to all you government agents spying on me.)
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To: Reverend Wright
let's hope it was "Chicago Mob" $$$$..

37 posted on 12/09/2013 9:21:38 PM PST by skinkinthegrass (The end move in politics is always to pick up a gun..0'Caligula / 0'Reid / 0'Pelosi :-)
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To: Mark17

TRUST ME BROTHER, LOOKS AIN’T DECEIVING


38 posted on 12/09/2013 10:21:07 PM PST by DanielRedfoot (Creepy Ass Cracker)
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To: Viennacon; AuH2ORepublican; fieldmarshaldj

I wonder if former State Rep. John “Q” Quinones can be convinced to run again. He’s the strongest potential Republican and probably the only guy and I can see winning that tough district.

He was badly beaten in the 2012 primary by Todd Long, 47%-28%. Long was subsequently badly beaten by Grayson.


39 posted on 12/09/2013 10:55:29 PM PST by Impy (RED=COMMUNIST, NOT REPUBLICAN)
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To: Sarah Barracuda

Grayson is said to be pleased that his personal wealth has been redistributed. LOLOLOL


40 posted on 12/10/2013 12:13:46 AM PST by alstewartfan (Lines of coffee cups on parade, Soldiers for keeping the night away, Al Stewart)
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To: Zakeet

It’s not often that you see a con-artist get conned.


41 posted on 12/10/2013 12:41:51 AM PST by fella ("As it was before Noah so shall it be again,")
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To: All

Schadenfreude!


42 posted on 12/10/2013 2:12:56 AM PST by Rodney Dangerfield ("Close the Voter ID Loophole! ID & Background checks for all voters!")
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To: Zakeet

Alan Grayson Lost $18 Million In Investment Fraud Scheme

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.

Along the way, he has become wealthy. Roll Call, a Capitol Hill newspaper, ranked him 12th among all members of Congress based on financial disclosure forms, with a minimum net worth of $31.12 million.

Shortly after his election, the 51-year-old responded to radio host Rush Limbaugh’s remark that he hoped President Obama would fail by calling Limbaugh a “has-been hypocrite loser,” adding for good measure that “Limbaugh actually was more lucid when he was a drug addict.” Mocking Republicans who apologized after criticizing Limbaugh, Grayson issued an “apology” of his own: “I’m sorry that Limbaugh is one sorry excuse for a human being.”

In October 2013, his campaign sent out a fundraising email that compared the Tea Party to the Ku Klux Klan. It used the image of a burning cross as the “T” in Tea Party. Matt Gorman of the National Republican Congressional Committee described the e-mail as “hateful words and imagery”. Grayson defended the comparison, saying that “here is overwhelming evidence that the Tea Party is the home of bigotry and discrimination in America today, just as the KKK was for an earlier generation.”

Committee assignments

2009–2011
Committee on Financial Services
Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises


43 posted on 12/10/2013 5:24:19 AM PST by tired&retired
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To: RugerMini14

Per Wiki:

He graduated from Bronx High School of Science in 1975. Grayson worked his way through Harvard College as a janitor and nightwatchman, and graduated with a Bachelors of Arts summa cum laude degree in economics in 1978.

Grayson made his fortune as the first president of IDT Corporation (International Discount Telecom)


44 posted on 12/10/2013 5:26:42 AM PST by tired&retired
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To: Zakeet

And the loons think he’s the second smartest person in the party, behind only Fauxcahontas.


45 posted on 12/10/2013 5:42:00 AM PST by dead (I've got my eye out for Mullah Omar.)
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To: tired&retired

International Discount Telecommunications) is an American telecommunications and energy company headquartered in Newark, New Jersey.

On January 26, 2006, IDT Telecom, Inc. sold to GVC Networks LLC all its IDT Winstar Solution subsidiaries: Winstar Communications, Winstar Government Solutions, LLC and Winstar Wireless, LLC.

Thanks to an old post on FR by NaturalBornConservative

http://www.freerepublic.com/focus/f-bloggers/2377802/posts

Lies, Tax Fraud and Deceit

My theory is that Alan Grayson is a liar, a fraud, and a tax-cheat. Who is this guy? How did he really obtain his wealth? It’s certainly worth further investigation in light of the following.

Summary:

Roll Call lists Alan Grayson’s largest asset is a claim against Derivium Capital, the now bankrupt Ponzi scheme, in the amount of $34 million.

Central Florida Politics lists Alan Grayson as the Derivium Capital scams most frequent customer.

Roll Call lists Grayson’s net worth at $31.12 million. Grayson’s only other asset is said to be a trust fund worth $5 to $25 million.

Roll Call states that Grayson founded IDT Corp. in 1990.

However, Wikipedia.org states that IDT was founded by Howard Jonas in 1990. An article from January 9, 1992, in the New York Times, entitled, “Hot-Wiring Overseas Telephone Calls”, backs up the fact that the company was founded by Howard Jonas, not Alan Grayson.

Per taxprophet.com, the IRS has targeted Derivium Capital’s loan transactions as taxable events.

Questionable Issues:

If Alan Grayson was not the founder of IDT Corp., then how did he obtain $29 million worth of stock between the years 2000 and 2005?

Since Alan Grayson was not the founder of IDT Corp., then why did he lie on his Congressional disclosure?

What was the cost basis of the stock which Alan Grayson sold to Derivium Capital for $26 million?

Did the IRS investigate Alan Grayson, and if so, how much was determined that Grayson owed in back taxes?

Did Alan Grayson voluntarily amend his tax returns to report the sale of stock to Derivium Capital?

What did Alan Grayson know about Derivium Capital at the time of the transaction?

Did Alan Grayson knowingly profit from an illegal Ponzi scheme?

Excerpts:

Rep. Alan Grayson (D-Fla.) $31.12 million

The Florida lawmaker’s largest asset stems from an apparent financial mistake.

Grayson lists a claim valued at $25 million to $50 million against Derivium Capital.

The now-bankrupt firm managed a Ponzi scheme in which investors, including Grayson, could turn over stock to Derivium in exchange for cash loans and redeem the value later if the stock prices increased. A South Carolina court ruled earlier this year that Derivium shareholders were collectively owed about $270 million in lost profits and that Grayson’s share would be about $34 million.

In addition to that claim, Grayson, an attorney who founded the telecommunications company IDT Corp. in 1990, lists a trust valued at $5 million to $25 million. The same trust was previously Grayson’s largest asset, with a value of $25 million to $50 million when he filed a candidate disclosure form in November 2008.

Scam’s Most Frequent Customer

Between 2000 and 2005, Grayson was the most frequent participant in Derivium’s “90-percent stock-loan” program, transferring about $29 million in stocks to Derivium and promptly receiving 90 percent of it – about $26 million – back in cash as “stock loans,” according to his court filings. In that sense, he lost only about $3 million out of pocket.

But Derivium had promised to pay Grayson profits on his stocks, if they appreciated enough over the three-year loan period to cover the amount of his “stock loans” plus interest. And Grayson picked some lucrative stocks. His $34 million in damages is based on the profits he should have received on stocks that rose in value – had Derivium not run out of cash and filed for bankruptcy.

Derivium Loan Update: IRS Targets Derivium Loan Transactions

Introduction: IRS has targeted taxpayers who have engaged in loan transactions through Derivium Capital by sending them Preliminary Notices, in late January, 2007, stating that the Derivium loan transaction may be a “tax avoidance” device.

In essence, IRS claims the Derivium loan transaction is really a taxable sale of securities at the time taxpayers received the proceeds, rather than a bona fide loan. IRS has an audit project underway in Sacramento, California, involving Derivium-type loans.

How It Works: In general, Derivium arranged loans for 90% of the value of a stock for an initial 3-year period at a compounded interest rate of approximately 10%. The loan is non-recourse, which means that at the end of the loan term, if the borrower cannot repay both principal and interest, the lender forecloses on the stock in full payment for the loan. The borrower has the option of rolling over the loan at maturity for an additional fee.

Note: Derivium has filed for bankruptcy and its client list has become public, thereby providing IRS with a road map of taxpayers who engaged in the loan transactions. Derivium is no longer in business.


46 posted on 12/10/2013 5:45:59 AM PST by tired&retired
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To: Zakeet
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.

LOL! He fell for the exact same scam twice.

I gotta meet this guy. I have an investment plan I'd like to run by him.

47 posted on 12/10/2013 5:48:02 AM PST by dead (I've got my eye out for Mullah Omar.)
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To: Mark17
He looks like a weasel.

He is that and more, but calling him a weasel is being nice, and also an insult to weasels!
48 posted on 12/10/2013 10:04:41 AM PST by seekthetruth (I still want a Commander In Chief who honors and supports our Military!)
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To: seekthetruth
He is that and more, but calling him a weasel is being nice, and also an insult to weasels!

LOL, roger that. I did not mean to insult weasels.

49 posted on 12/10/2013 1:39:45 PM PST by Mark17 (Chicago Blackhawks: Stanley Cup champions 2010, 2013. Vietnam Veteran, 70-71)
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