The Associated Press is reporting that Florida congressman Alan Grayson los1 $18 million dollars in a Ponzi scheme. He was one of nearly 100 individuals who was taken in by one William Dean Chapman of Sterling, Virgina
Guess Grayson thought since it was as financially solvent as Social Security, he couldn’t loose.
Florida Democrat Alan Grayson should have been able to cash in on tens of millions of dollars in returns on his stock portfolio, but prosecutors say the Virginia man behind the scheme sold the stocks out from under Grayson when they should have been kept as loan collateral.
William Dean Chapman, of Sterling, Va., was sentenced to 12 years in prison Friday for cheating 122 investors out of more than $35 million.
Read More – 690 News
But this isn’t the first time Grayson tried a get rich quick scheme –
According to Orlando’s Local 6, Grayson was an investor in a Ponzi scheme run by the company Derivium Capital. The scheme allowed Grayson and other investors to turn over stock to Derivium in exchange for cash loans and redeem the value later if the stock prices increased.
The station cited court filings indicating that Grayson transferred about $29 million in stock to the fund, taking out about $26 million in cash. A South Carolina court ruled earlier this year that Derivium shareholders were owed about $270 million in lost profits and that Grayson’s share of that would be about $34 million.
Read more: Business Insider