In February of last year, a man who said he was a “former Goldman Sachs trader,” Chris Blackwell, sat an undercover Federal agent down at Hooters and pitched him on his investment scheme.
According to an SEC complaint, the 31-year old said things to the undercover agent like, I can double or triple your money in 60 days, I will personally replace your collateral with mine within 7 days so there’s no risk, I always buy at 50% of face value and sell at 52%.
He also said he earned his Ph.D. and has worked at Goldman and the Bank of Madrid.
Blackwell met with the Federal agent at Hooters to pitch him on his (alleged) Ponzi scheme at least twice, according to the complaint, which makes us wonder –
Was pitching investors at Hooters a part of Blackwell’s (alleged) scheme? Maybe he figured that his trading methods would sound more legit if there were other, more important things for his investors to pay attention to in the vicinity.
Listen to how Blackwell pitched his investment “edge” to investors before making your decision.
The secret to his investment scheme was apparently the “buddies [he] went to school with,” who he had worked with at Goldman and the Bank of Madrid. He told investors that his “buddies” now worked at pension funds and insurance companies, and that he had an agreement with them whereby they would buy fixed income securities at prices higher than the discounted prices he paid.
Maybe “I always buy at 50% of face value and sell at 52%” sounds like a good investment idea when you have a pair of boobs in your face, but according to the SEC, none of it is true.
Instead of investing it, Blackwell allegedly spent the money on child support, travel, Gentlemen’s clubs, food, a Hummer, an Audi, travel, and other things listed in the complaint below.
The Federal agent who was sent to Hooters undercover to bust him obviously didn’t fall for Blackwell’s distracting boob scheme, but a former Dallas Cowboy did, and so did at least 2 other investors.
In total Blackwell is accused of misappropriating over $1.4 million of their money.
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