The sentencing of a Virginia man who ran a stock market scheme is bringing justice to over 100 investors who reportedly collectively lost over $35 million, including Florida Congressman Alan Grayson.
William Dean Chapman, who was sentenced in federal court on Friday to 12 years in prison, is the convicted perpetrator of a scheme in which he would accept stocks as collateral for loans of up to 90% of the stocks’ value. Instead of returning the stocks to investors, however, he sold them and kept the profit. When Grayson reportedly asked for a loan payment after his stocks increased in value, Chapman was unable to meet his obligations under the agreement.
Court documents show that Congressman Grayson, a Democrat, personally lost $18 million. Although he is identified only by his initials, he confirmed to the Associated Press on Monday that he was the reported primary victim of the scheme.
This incident is reportedly not the first to cause Grayson to lose millions to fraud. According to the Associated Press, in 2009 he won a $34 million lawsuit in South Carolina after falling victim to a scheme similar to Chapman’s.
Grayson is noted as one of the wealthiest members of Congress with assets of over $20 million.