Florida Rep. Alan Grayson Lost Millions of Dollars in Stock Fraud Scheme

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Florida Democratic Representative Alan Grayson entered the national media spotlight during the debate over healthcare by saying that the GOP plan was for the sick to “Die Quickly.” Since then Rep. Grayson has tried to become the kind of outspoken character for the left that Iowa’s Steve King or Texas’s Louie Gohmert is for the right. Whether or not he’s been successful is a matter for debate, but Rep. Grayson finds himself in the news again only this time for being a victim. The Associated Press reports that Grayson was one of 120 investors who lost more than $35 million in a scheme that purportedly allowed investors to use their portfolios as collateral for a loan.

In the article Grayson told the AP that “he has had a long record for picking winning stocks,” and the trial documents seem to back up that account. William Chapman, the con artist in charge, was sentenced to 12 years in federal prison primarily because Grayson’s stocks performed so well that Chapman was unable to cover what he owed the Congressman. His inability to cover these payments to Grayson is what “caused Chapman’s scheme to crumble.”

According to a report from POLITICO, “Grayson has a minimum of $22.8 million in assets, as well as at least $5 million in liabilities.” Along with doing well in the stock market, Grayson “helped create a successful long-distance telecommunications company.” This is also not the first time the congressman has lost money due to fraud. He won a lawsuit in 2009 against Derivium Capital, whose “business plan for hedging an investor’s stock profile was nearly identical to the plan outline[d] by Chapman.” Grayson also expressed disappointment with federal court officials for not better protecting his identity as a victim in the fraud.