| McGraw For
Southpark Lane Fraud Gets 18 Months, Says
He Was Scarred by Financial Crisis
By Matthew
Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY COURTHOUSE,
June 14 – A white collar
criminal up for sentencing for
wire fraud in the purchase of
a Dallas insurance company
blamed his crimes on being
"scarred by the financial
crisis" while citing his Grade
Point Average on June 14 to
U.S. District Court for the
Southern District of New York
Judge Katherine Polk Failla.
It was
Robert McGraw, and he got
Inner City
Press live tweeted it, here:
Foray into white collar crime:
sentencing of Robert McGraw for using inflated
securities and fake art to buy Dallas National
Insurance while at Southport private equity
firm.
He's out on $250,00 bond. DOJ wants 5 years;
defense wants probation.
Judge Failla asks: So where is the dispute
Michelangelo Caravaggio painting now?
Assistant US Attorney: I don't know.
Judge Failla: It's not in a storage unit?
McGraw's lawyer: It's still in New York.
McGraw is blaming his financial chicanery on
mental issues. Much of his sentencing
submission is redacted.
After many references to "Individual-1," Judge
Failla asks if either side is asking for this
to be sealed. No. Individual-1 is Alex
Burns.
McGraw's sentencing submission says Burns
"feigned a mental breakdown, ran to Bellevue
and his mother." #NoHonorAmongThieves
Defendant Robert McGraw at sentencing:
"From an early age my parents recognized my
intellectual capacity... I have always been
known for a sharp wit." But not humility, it
seems clear.
McGraw: "I graduated at the top of my class of
32 students... My ability to rapidly absorb
information assisted me. My GPA was 3.87." Is
this a plea for mercy or a below guidelines
sentence?
McGraw: "I became enthralled by the
opportunities in international taxation
structuring... At Deloitte I learned rules. At
Merrill Lynch I learned to apply them. I was
incredibly successful."
Then he used fake art to fraudulently buy an
insurance company
McGraw: "I was scarred by the collapse of
Merrill Lynch.. up to it merger with Bank of
America. Credit Suisse was unappealing. So I
joined Southport Lane. It was a siren's
calling." Call it, wire fraud blues.
McGraw describes the collusion in fraud
by U.S. Bank, as custodian. "I should have
made every attempt to escape."
Now Judge Failla is taking a break, probably
15 minutes or so, to decide on McGraw's
sentence.
OK, Judge Failla is back and is about to
impose sentencing on McGraw, "scarred by the
financial crisis." Judge Failla: There is a 60
month statutory maximum. At some point in his
presentation I stopped note-taking. It's a
high water mark of introspection.
Judge Failla: That said, this was a lot
of money. The conduct to which Mr. McGraw
admitted is indefensible.
OK here it is: Judge Failla has just sentenced
Robert McGraw, who was "scarred by the
financial crisis" then engaged in fraud to buy
a Dallas insurance company, to 18 months. $50
million restitution.
The case is US v. McGraw, 20-cr-85 (Failla)
***
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