David P. Bloom: Difference between revisions
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{{Infobox criminal |
{{Infobox criminal |
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| conviction = December 1988 |
| conviction = December 1988, 2000 |
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| charge = [[Mail fraud]], [[securities fraud]], |
| charge = [[Mail fraud]], [[securities fraud]], grand [[larceny]] and scheming to defraud |
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| conviction_penalty = 8 years in prison, forfeiture of US$13 million, lifetime ban from securities industry |
| conviction_penalty = 8 years in prison in 1988, forfeiture of US$13 million, lifetime ban from securities industry, 5 years in prison in 2000 |
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Bloom, from the Upper East Side of Manhattan, attended [[Trinity School (New York City)|Trinity School]]<ref name="NYT01181988"/> where he graduated in 1982.<ref name="DLN01241988"> {{Cite news | title=The story behind the Kid's con | work=[[New York Daily News]] | url=https://www.newspapers.com/image/434457219| date=January 24, 1988 | url-status=live}}</ref> After graduating from [[Duke University]],<ref name="TMG01251988">{{Cite news | title=The Whiz Kid Who Wasn't | work=[[Time (magazine)|Time]] | url=http://content.time.com/time/subscriber/article/0,33009,966543,00.html| date=January 25, 1988 | url-status=live}}</ref> Bloom returned to New York to start an investment company under the name of Greater Sutton Investors Group Inc.<ref name="NYT01131988">{{Cite news | title=Lush Life: Investor, 23, Named in Huge Fraud | work=The New York Times | url=https://www.nytimes.com/1988/01/13/nyregion/lush-life-investor-23-named-in-huge-fraud.html| date=January 13, 1988 | url-status=live}}</ref><ref>{{cite book |last=Blum |first=David |author-link=David_Blum |date=February 22, 1988 |title=Rich Kid, Poor Kid |url=https://books.google.com/books?id=reUCAAAAMBAJ&dq=david+bloom+stock+quote+machines&pg=PA55 |location=New York |work=[[New York (magazine)|New York]] |page=48}}</ref> |
Bloom, from the Upper East Side of Manhattan, attended [[Trinity School (New York City)|Trinity School]]<ref name="NYT01181988"/> where he graduated in 1982.<ref name="DLN01241988"> {{Cite news | title=The story behind the Kid's con | work=[[New York Daily News]] | url=https://www.newspapers.com/image/434457219| date=January 24, 1988 | url-status=live}}</ref> After graduating from [[Duke University]],<ref name="TMG01251988">{{Cite news | title=The Whiz Kid Who Wasn't | work=[[Time (magazine)|Time]] | url=http://content.time.com/time/subscriber/article/0,33009,966543,00.html| date=January 25, 1988 | url-status=live}}</ref> Bloom returned to New York to start an investment company under the name of Greater Sutton Investors Group Inc.<ref name="NYT01131988">{{Cite news | title=Lush Life: Investor, 23, Named in Huge Fraud | work=The New York Times | url=https://www.nytimes.com/1988/01/13/nyregion/lush-life-investor-23-named-in-huge-fraud.html| date=January 13, 1988 | url-status=live}}</ref><ref>{{cite book |last=Blum |first=David |author-link=David_Blum |date=February 22, 1988 |title=Rich Kid, Poor Kid |url=https://books.google.com/books?id=reUCAAAAMBAJ&dq=david+bloom+stock+quote+machines&pg=PA55 |location=New York |work=[[New York (magazine)|New York]] |page=48}}</ref> |
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==Criminal inquiries and conviction== |
==Criminal inquiries and conviction in 1988== |
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In 1988, the [[U.S. Securities and Exchange Commission]] (SEC) accused Bloom of using his unregistered investment business to collect over $10 million between 1985 and 1988 from over 140 clients for his personal gain.<ref name="NYT01131988"/><ref>{{Cite news | title=Investor, 23, Charged in $10 Million Fraud| work=The New York Times | url=https://www.nytimes.com/1988/01/15/nyregion/investor-23-charged-in-10-million-fraud.html| date=January 15, 1988 | url-status=live}}</ref> Instead of making investments on behalf of his clients, Bloom was accused of acquiring art, real estate and other personal assets with his clients funds.<ref>{{Cite news | title=Ersatz whiz kid to sell assets to settle SEC case| work=[[UPI]] | url=https://www.upi.com/Archives/1988/01/13/Ersatz-whiz-kid-to-sell-assets-to-settle-SEC-case/7475569048400/| date=January 13, 1988 | url-status=live}}</ref><ref>{{Cite news | title=SEC Charges 23-year-old investor with diverting $8 million of client's funds | work=The Journal News Metro | url=https://www.newspapers.com/image/163255056/| date=January 13, 1988 | url-status=live}}</ref> |
In 1988, the [[U.S. Securities and Exchange Commission]] (SEC) accused Bloom of using his unregistered investment business to collect over $10 million between 1985 and 1988 from over 140 clients for his personal gain.<ref name="NYT01131988"/><ref>{{Cite news | title=Investor, 23, Charged in $10 Million Fraud| work=The New York Times | url=https://www.nytimes.com/1988/01/15/nyregion/investor-23-charged-in-10-million-fraud.html| date=January 15, 1988 | url-status=live}}</ref> Instead of making investments on behalf of his clients, Bloom was accused of acquiring art, real estate and other personal assets with his clients funds.<ref>{{Cite news | title=Ersatz whiz kid to sell assets to settle SEC case| work=[[UPI]] | url=https://www.upi.com/Archives/1988/01/13/Ersatz-whiz-kid-to-sell-assets-to-settle-SEC-case/7475569048400/| date=January 13, 1988 | url-status=live}}</ref><ref>{{Cite news | title=SEC Charges 23-year-old investor with diverting $8 million of client's funds | work=The Journal News Metro | url=https://www.newspapers.com/image/163255056/| date=January 13, 1988 | url-status=live}}</ref> |
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Bloom's parents were later sued for $191,250 that Bloom spent on them,<ref name=APNEWS>{{Cite news | title=Parents of Wall Street Whiz Kid Sued for Money He Spent on Them | work=[[AP News]] | url=https://apnews.com/article/ff0598d50e4ec1f7a5676733d420673a| date=December 18, 1988 | url-status=live}}</ref> and they settled for $30,000.<ref>{{Cite news | title=Investors in scam to get 44% return | work=[[The News & Observer]] | url=https://www.newspapers.com/image/655854532/| date=August 18, 1989 | url-status=live}}</ref> |
Bloom's parents were later sued for $191,250 that Bloom spent on them,<ref name=APNEWS>{{Cite news | title=Parents of Wall Street Whiz Kid Sued for Money He Spent on Them | work=[[AP News]] | url=https://apnews.com/article/ff0598d50e4ec1f7a5676733d420673a| date=December 18, 1988 | url-status=live}}</ref> and they settled for $30,000.<ref>{{Cite news | title=Investors in scam to get 44% return | work=[[The News & Observer]] | url=https://www.newspapers.com/image/655854532/| date=August 18, 1989 | url-status=live}}</ref> |
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==Criminal inquiries and conviction in 2000== |
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Bloom was sentenced in 2000 and served five years in prison for defrauding at least 10 people out of over $50,000. He pleaded guilty to charges of grand larceny and scheming to defraud and was released in 2006 on parole. <ref>{{Cite news | title=How a twice-convicted con artist went from scamming Manhattan elites to L.A. dive bars | work=[[Los Angeles Times]] | url=https://www.latimes.com/california/story/2022-09-28/con-artist-scam-manhattan-elite-la-dive-bar-frolic-room| date=September 28, 2022| url-status=live}}</ref> |
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==References== |
==References== |
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Revision as of 03:47, 29 September 2022
David P. Bloom | |
|---|---|
| Conviction(s) | December 1988, 2000 |
| Criminal charge | Mail fraud, securities fraud, grand larceny and scheming to defraud |
| Penalty | 8 years in prison in 1988, forfeiture of US$13 million, lifetime ban from securities industry, 5 years in prison in 2000 |
David Peter Bloom is a convicted American fraudster who defrauded investors of almost $15 million in the 1980s.[1][2]
Early life
Bloom, from the Upper East Side of Manhattan, attended Trinity School[2] where he graduated in 1982.[3] After graduating from Duke University,[4] Bloom returned to New York to start an investment company under the name of Greater Sutton Investors Group Inc.[5][6]
Criminal inquiries and conviction in 1988
In 1988, the U.S. Securities and Exchange Commission (SEC) accused Bloom of using his unregistered investment business to collect over $10 million between 1985 and 1988 from over 140 clients for his personal gain.[5][7] Instead of making investments on behalf of his clients, Bloom was accused of acquiring art, real estate and other personal assets with his clients funds.[8][9]
Notable investors in Bloom's scheme included the Sultan of Brunei, Bill Cosby, and the Rockefeller family.[10]
Bloom settled with the SEC without admitting guilt [11] and agreed to hand over all his assets to a court-appointed receiver. He also was barred for life from the securities industry; including association with any broker, dealer, investment adviser, investment company, or municipal securities dealer. [12]
Two days after his settlement with the SEC, Bloom was charged by federal prosecutors in Manhattan for violations of the registration and antifraud provisions of the Investment Advisers Act of 1940.[4] Bloom pleaded guilty, waiving indictment,to one count each of mail and securities fraud.[13] He was sentenced to eight years in prison for defrauding investors of almost $15 million.[14] Bloom served 5 years out of his 8-year sentence, at the Federal Correctional Complex, Allenwood, in Pennsylvania.[15]
Due to Bloom's young age at the time of his criminal activity, the press referred to him as a whiz kid; most often the "Wall Street Whiz Kid".[16][13][14]
Bloom's parents were later sued for $191,250 that Bloom spent on them,[16] and they settled for $30,000.[17]
Criminal inquiries and conviction in 2000
Bloom was sentenced in 2000 and served five years in prison for defrauding at least 10 people out of over $50,000. He pleaded guilty to charges of grand larceny and scheming to defraud and was released in 2006 on parole. [18]
References
- ^ "Consultant, 23, Faces Charge of Mail Fraud : Unregistered Adviser Could Get 5-Year Term". Los Angeles Times. January 15, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ a b "New Yorkers & Co.; Young Name Dropper Wins Riches, and a Date in Court". The New York Times. January 18, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ "The story behind the Kid's con". New York Daily News. January 24, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ a b "The Whiz Kid Who Wasn't". Time. January 25, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ a b "Lush Life: Investor, 23, Named in Huge Fraud". The New York Times. January 13, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ Blum, David (February 22, 1988). Rich Kid, Poor Kid. New York. p. 48.
{{cite book}}:|work=ignored (help)CS1 maint: location missing publisher (link) - ^ "Investor, 23, Charged in $10 Million Fraud". The New York Times. January 15, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ "Ersatz whiz kid to sell assets to settle SEC case". UPI. January 13, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ "SEC Charges 23-year-old investor with diverting $8 million of client's funds". The Journal News Metro. January 13, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ "'Whiz Kid,' 23, Pleads Guilty to Securities Scam". Los Angeles Times. Associated Press. March 31, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ "SEC Claims Artful Swindle". The Washington Post. January 13, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ U.S. Securities and Exchange Commission Annual Report 1988 (PDF). New York: U.S. Securities and Exchange Commission. December 4, 1988. p. 28.
- ^ a b "'Wall St. Whiz Kid' Given Stiff 8-Year Prison Term". Los Angeles Times. December 10, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ a b "Wall St. 'Whiz Kid' Gets 8-Year Term for Fraud". The New York Times. December 10, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ "Court Upholds Term for Fraud". The New York Times. Associated Press. August 27, 1991.
{{cite news}}: CS1 maint: url-status (link) - ^ a b "Parents of Wall Street Whiz Kid Sued for Money He Spent on Them". AP News. December 18, 1988.
{{cite news}}: CS1 maint: url-status (link) - ^ "Investors in scam to get 44% return". The News & Observer. August 18, 1989.
{{cite news}}: CS1 maint: url-status (link) - ^ "How a twice-convicted con artist went from scamming Manhattan elites to L.A. dive bars". Los Angeles Times. September 28, 2022.
{{cite news}}: CS1 maint: url-status (link)