Infamous Con Man Arrested for Securities Fraud in Los Angeles

Share on:

Image Credit: Robert Gauthier/Los Angeles Times

David Bloom, a twice-convicted con man known for scamming wealthy individuals, has been arrested in Los Angeles. Bloom, 59, is accused of defrauding at least a dozen Angelenos out of tens of thousands of dollars by promising to sell them stocks he did not own. He has been charged with nine counts of grand theft and nine counts of fraud while selling securities.

According to authorities, Bloom targeted neighbors and new acquaintances he met at local bars and restaurants. He allegedly claimed to have access to trendy stocks such as Coinbase and Soho House before they went public. However, his victims reported that they never received any profits from their investments, and Bloom became increasingly evasive when questioned about the stocks’ performance.

Bloom’s criminal activities in Los Angeles mirrored his previous scams in New York. Raised in Manhattan’s Upper East Side, he had a lavish lifestyle funded by cash from clients of his Greater Sutton Investors Group. Despite falsely claiming to have high-profile clients like Bill Cosby and members of the Rockefeller family, Bloom was not a financial advisor and only used the funds for personal expenses.

After being caught by federal prosecutors, Bloom pleaded guilty to mail and securities fraud in 1988, earning him the nickname “Wall Street Whiz Kid.” He was sentenced to eight years in federal prison and permanently banned from the securities industry. He later pleaded guilty to larceny and violations of business law in 2000, serving approximately five years in prison.

Last year, Bloom was accused of running similar scams in Los Angeles, targeting residents of a historic apartment complex and patrons of a dive bar. He allegedly promised to connect them with influential figures and make their dreams come true. One victim, Caroline D’Amore, a reality TV star and actress, fell for Bloom’s claim that he could introduce her to A.C. Gallo, the CEO of Whole Foods.

 

Ryan Scott
Author: Ryan Scott

Just a guy

Share on: