Jeffrey Grayson
Financial Fraud Conviction
CLASSIFICATION: Financial Crime
LOCATION
Portland, Oregon
TIME PERIOD
2000-2009
VICTIMS
0 confirmed
On September 21, 2000, Jeffrey Grayson, co-founder and CEO of Capital Consultants, was implicated in a mail fraud scheme involving questionable loans made to Wilshire Credit Corporation, led by CEO Andrew Wiederhorn. The fraudulent activities took place primarily in Portland, Oregon, where Capital Consultants was based, and resulted in significant financial losses for investors. Grayson, along with his son Barclay Grayson, was convicted of mail fraud, leading to a series of legal repercussions for both individuals and the company. As of now, Jeffrey Grayson passed away on November 27, 2009, but the case remains a notable example of corporate fraud in the Pacific Northwest, with ongoing discussions about the impact on regulatory practices in investment management. Key evidence included financial records and communications that outlined the fraudulent transactions, which were critical in securing the convictions.
Jeffrey Grayson is believed to have engaged in fraudulent activities through questionable loans made to Wilshire Credit Corporation, which has led to speculation about the extent of his involvement in financial crimes. Some theorize that his legal troubles were influenced by a pattern of unethical behavior learned from his family's history, particularly given his mother's conviction for perjury. Additionally, there are suspicions that his business practices may have involved collusion with other executives, raising questions about the broader implications of his actions within the financial industry.
The Rise and Fall of Jeffrey Grayson: A True Crime Narrative
Early Life and Ambitions
Born on May 4, 1942, in the serene town of Salem, Oregon, Jeffrey Lloyd Grayson entered the world alongside his twin sister Janet. Their family, however, faced turmoil early on when their parents, N. Philip and Blossom Grayson, decided to divorce in the 1950s. Jeffrey's father was a small business owner, instilling in him a sense of entrepreneurship from a young age.
Jeffrey's formative years were spent in Portland, where he attended Duniway School and later graduated from Cleveland High School. His academic journey continued at the University of Oregon in Eugene. There, he became a member of the Beta Theta Pi fraternity and even spent a year on the cheerleading squad. However, the family's troubles resurfaced when his mother and stepfather were convicted of perjury and concealing assets during bankruptcy in 1961. Despite these challenges, Jeffrey earned a business degree and briefly attended Willamette University College of Law in Salem before leaving to work in securities at U.S. Bank. Tragically, in 1967, he lost his twin sister Janet in a car accident, a loss that marked him profoundly.
The Birth of Capital Consultants
In 1968, with the ambition to make a mark in the investment world, Jeffrey, alongside his law school roommate Charles Swindells, founded Capital Consultants. The company quickly grew, managing $140 million by 1976, including pensions for Tektronix and Multnomah County workers. Capital Consultants rose to prominence as the largest independent funds manager in the Pacific Northwest, at one point managing assets worth $1 billion.
However, success was not without its shadows. The company faced a series of legal challenges, including a suspension of its trading license by the SEC and an investigation by the Oregon Attorney General. Despite these setbacks, Jeffrey continued to build his reputation, serving on the boards of the National Multiple Sclerosis Society’s local chapter and the Oregon Museum of Science and Industry. His philanthropy extended to the University of Oregon, where his $1.5 million pledge and leadership in their endowment campaign led to a building being named in his honor—though this was later revoked amid his legal troubles.
The Ponzi Scheme Unveiled
The late 1990s brought with them a darker chapter for Grayson and his enterprise. Capital Consultants, under Jeffrey's leadership, became entangled in a scheme akin to a Ponzi scheme. The U.S. Securities and Exchange Commission took action, suing both the company and Jeffrey in September 2000. The case escalated on September 21, 2000, when a district court placed Capital Consultants into receivership, appointing Thomas F. Lennon as the receiver. Subsequently, a judge removed Jeffrey from control, and federal prosecutors filed charges for 22 separate counts against him in October 2001.
Jeffrey pleaded guilty to mail fraud among other charges. His potential sentence could have reached up to four years in prison, but fate intervened once more. In 2002, he suffered a debilitating stroke, rendering him unable to appear in court or receive a prison sentence.
Later Life and Death
The repercussions of his actions haunted Grayson. He attributed his criminal activities to desperate attempts to recover his clients' investment losses. Following his stroke, Jeffrey was moved to a long-term care facility in Southwest Portland. There, away from the empire he once built, he spent his remaining years.
On November 27, 2009, Jeffrey Grayson passed away at the age of 67 in Portland, Oregon. His life, marked by ambition and scandal, left an indelible mark on the financial and legal landscapes of the Pacific Northwest.
Sources
- Manning, Jeff; James Long (April 23, 2002). "Losing All That Mattered to Him". The Oregonian. p. A1.
- Manning, Jeff (November 30, 2009). "Jeff Grayson, investment manager, dies at age 67". The Oregonian. Retrieved December 1, 2009.
- Manning, Jeff (February 11, 2005). "Salesman's sentence ends Capital Consultants trials". The Oregonian. pp. D1.
- "UNITED STATES v. JEFFREY LLOYD GRAYSON". Retrieved November 28, 2005.
For further reading, visit the Wikipedia article.
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Jeffrey Grayson Born
Jeffrey Lloyd Grayson is born in Salem, Oregon.
Capital Consultants Founded
Jeffrey Grayson co-founds Capital Consultants with Charles Swindells.
SEC Lawsuit Filed
The U.S. Securities and Exchange Commission sues Grayson and Capital Consultants.
Company Receivership
District court places Capital Consultants into receivership.
Charges Filed
Federal prosecutors file 22 counts against Grayson.
Grayson Pleads Guilty
Jeffrey Grayson pleads guilty to mail fraud and other charges.
Stroke Affects Case
Grayson suffers a stroke, preventing his sentencing.
Jeffrey Grayson Dies
Jeffrey Grayson passes away at the age of 67 in Portland.
On September 21, 2000, Jeffrey Grayson, co-founder and CEO of Capital Consultants, was implicated in a mail fraud scheme involving questionable loans made to Wilshire Credit Corporation, led by CEO Andrew Wiederhorn. The fraudulent activities took place primarily in Portland, Oregon, where Capital Consultants was based, and resulted in significant financial losses for investors. Grayson, along with his son Barclay Grayson, was convicted of mail fraud, leading to a series of legal repercussions for both individuals and the company. As of now, Jeffrey Grayson passed away on November 27, 2009, but the case remains a notable example of corporate fraud in the Pacific Northwest, with ongoing discussions about the impact on regulatory practices in investment management. Key evidence included financial records and communications that outlined the fraudulent transactions, which were critical in securing the convictions.
Jeffrey Grayson is believed to have engaged in fraudulent activities through questionable loans made to Wilshire Credit Corporation, which has led to speculation about the extent of his involvement in financial crimes. Some theorize that his legal troubles were influenced by a pattern of unethical behavior learned from his family's history, particularly given his mother's conviction for perjury. Additionally, there are suspicions that his business practices may have involved collusion with other executives, raising questions about the broader implications of his actions within the financial industry.
The Rise and Fall of Jeffrey Grayson: A True Crime Narrative
Early Life and Ambitions
Born on May 4, 1942, in the serene town of Salem, Oregon, Jeffrey Lloyd Grayson entered the world alongside his twin sister Janet. Their family, however, faced turmoil early on when their parents, N. Philip and Blossom Grayson, decided to divorce in the 1950s. Jeffrey's father was a small business owner, instilling in him a sense of entrepreneurship from a young age.
Jeffrey's formative years were spent in Portland, where he attended Duniway School and later graduated from Cleveland High School. His academic journey continued at the University of Oregon in Eugene. There, he became a member of the Beta Theta Pi fraternity and even spent a year on the cheerleading squad. However, the family's troubles resurfaced when his mother and stepfather were convicted of perjury and concealing assets during bankruptcy in 1961. Despite these challenges, Jeffrey earned a business degree and briefly attended Willamette University College of Law in Salem before leaving to work in securities at U.S. Bank. Tragically, in 1967, he lost his twin sister Janet in a car accident, a loss that marked him profoundly.
The Birth of Capital Consultants
In 1968, with the ambition to make a mark in the investment world, Jeffrey, alongside his law school roommate Charles Swindells, founded Capital Consultants. The company quickly grew, managing $140 million by 1976, including pensions for Tektronix and Multnomah County workers. Capital Consultants rose to prominence as the largest independent funds manager in the Pacific Northwest, at one point managing assets worth $1 billion.
However, success was not without its shadows. The company faced a series of legal challenges, including a suspension of its trading license by the SEC and an investigation by the Oregon Attorney General. Despite these setbacks, Jeffrey continued to build his reputation, serving on the boards of the National Multiple Sclerosis Society’s local chapter and the Oregon Museum of Science and Industry. His philanthropy extended to the University of Oregon, where his $1.5 million pledge and leadership in their endowment campaign led to a building being named in his honor—though this was later revoked amid his legal troubles.
The Ponzi Scheme Unveiled
The late 1990s brought with them a darker chapter for Grayson and his enterprise. Capital Consultants, under Jeffrey's leadership, became entangled in a scheme akin to a Ponzi scheme. The U.S. Securities and Exchange Commission took action, suing both the company and Jeffrey in September 2000. The case escalated on September 21, 2000, when a district court placed Capital Consultants into receivership, appointing Thomas F. Lennon as the receiver. Subsequently, a judge removed Jeffrey from control, and federal prosecutors filed charges for 22 separate counts against him in October 2001.
Jeffrey pleaded guilty to mail fraud among other charges. His potential sentence could have reached up to four years in prison, but fate intervened once more. In 2002, he suffered a debilitating stroke, rendering him unable to appear in court or receive a prison sentence.
Later Life and Death
The repercussions of his actions haunted Grayson. He attributed his criminal activities to desperate attempts to recover his clients' investment losses. Following his stroke, Jeffrey was moved to a long-term care facility in Southwest Portland. There, away from the empire he once built, he spent his remaining years.
On November 27, 2009, Jeffrey Grayson passed away at the age of 67 in Portland, Oregon. His life, marked by ambition and scandal, left an indelible mark on the financial and legal landscapes of the Pacific Northwest.
Sources
- Manning, Jeff; James Long (April 23, 2002). "Losing All That Mattered to Him". The Oregonian. p. A1.
- Manning, Jeff (November 30, 2009). "Jeff Grayson, investment manager, dies at age 67". The Oregonian. Retrieved December 1, 2009.
- Manning, Jeff (February 11, 2005). "Salesman's sentence ends Capital Consultants trials". The Oregonian. pp. D1.
- "UNITED STATES v. JEFFREY LLOYD GRAYSON". Retrieved November 28, 2005.
For further reading, visit the Wikipedia article.
No Recent News
No recent news articles found for this case. Check back later for updates.
No Evidence Submitted
No evidence found for this case. Be the first to submit evidence in the comments below.
Join the discussion
Loading comments...
Jeffrey Grayson Born
Jeffrey Lloyd Grayson is born in Salem, Oregon.
Capital Consultants Founded
Jeffrey Grayson co-founds Capital Consultants with Charles Swindells.
SEC Lawsuit Filed
The U.S. Securities and Exchange Commission sues Grayson and Capital Consultants.
Company Receivership
District court places Capital Consultants into receivership.
Charges Filed
Federal prosecutors file 22 counts against Grayson.
Grayson Pleads Guilty
Jeffrey Grayson pleads guilty to mail fraud and other charges.
Stroke Affects Case
Grayson suffers a stroke, preventing his sentencing.
Jeffrey Grayson Dies
Jeffrey Grayson passes away at the age of 67 in Portland.