Hopefully He's More Careful When It's Other People's Money
Meet Democratic Rep. Alan Grayson of Florida. He's a member of the House Financial Services Committee, which is busy rewriting all of the rules covering banking, investing and such. So he's on top of those issues right? Hmm, maybe not according to the Capitol Hill newspaper Roll Call:
Freshman Rep. Alan Grayson (D-Fla.) lost $3 million in a stock swindle between 2000 and 2005, a Florida television station reported this week.Read the rest of the story here.
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.
Of course, when it comes to the federal government, only losing a few million is an accomplishment.