Oklahomans Not Isolated from Global Financial Scams
Financial scams raise the cost of capital for all of us. Even more, they tear a financial and emotional hole in their victims. One of the surprise affects of the recession is the exposure of a bevy of big time scams. And though we live comfortably in this mid-size Great Plains town, we cannot let our guard down.
Bernard Madoff’s inferno scorched Oklahoma investors and, if you stop and think, scams and scam artists are all around us. I asked a handful of people what local scammers first come to their mind. Bill Bartmann won hands down. Three bankrupt companies but, of course, no convictions. Second was Stephen Dodson, the 1990’s securities fraudster that did some time. The “Friends Network” also went down in the early 90’s, and before that was the criminal fraud related to Goldcore and Tulsa stockbrokerage firm Fitzgerald, DeArman & Roberts. Kenneth Azubuike of Tulsa was convicted on forty-one counts, mostly fraud, in 2004, and just last week a Broken Arrow man, Terry Hugh Mahon, was sentenced to prison for a mortgage fraud scheme that lured homeowners with “cash-back rebate coupons.”
The most internationally recognized con artist with Oklahoma connections is probably Tulsa resident Frank Abagnale, Jr., subject of the movie “Catch Me if You Can.”
Interesting as well is a longtime employee, public spokesperson and manager for a small company that perpetrated a multi-million dollar scam in the UK — some estimating the take as high as $500 million — recently settled in Oklahoma. Matthew James “Matt” Bristow landed in Tulsa in 2008 by way of Tulsan Lindsey Hawkins, daughter of James F. “Jim” and Robin Hawkins of Tulsa and a graduate of Hall and Hall High School. He picked up a job with a local firm and promptly perpetrated a scam estimated at $200,000.
He married Ms. Hawkins and has has set up shop in the Philtower building, a downtown Tulsa building owned Jim Hawkins. Bristow is operating under the name ClearRidge Capital (aka ClearRidge Advisors).
Matthew Bristow’s UK firm was Pacific Continental Securities (PCS). PCS was the subject of action by the Financial Service Authority (the British equivalent of the SEC) that resulted in the business going into public administration mid-2007, which coincided with Matthew Bristow’s travel to the U.S. on a visitation visa.
Some public reports estimate as many as 8,000 people lost money they “invested” with PCS. Public filings indicate PCS had just 40–something employees. Apparently, all working on a single floor of a single office building.
PCS and Bristow’s great skill appears to have been mimicking the look and feel of a large and legitimate global securities firm. Bristow convinced the owners to move the firm to a first class office building in the prestigious London Financial District. He publicly boasted of offices around the globe, a long history of financial success, and scores of satisfied clients. PCS developed sophisticated job titles such as the one Bristow used at times — Derivatives Trading Desk Manager. Bristow issued public releases of information, such as legitimate-sounding commentary on the capital markets. A U.K. private investigator, upon completing his investigation, concluded that Bristow “no doubt” knew the statements he made were “inaccurate” and that he formulated them to deceive. The UK government found that PCS:
- failed to conduct business with integrity
- failed to pay due regard to the interests of its customers
- misled customers
- pressured (customers) to make immediate investment decisions about high risk securities based on bogus information
PCS is currently being liquidated. Bristow did not return to the U.K. The investigator says he’s officially a “visa overstay.”
ClearRidge Capital purports to provide services to the private equity community, such as corporate finance, merger and acquisitions and turn-around. Bristow is again regularly issuing financial market commentary, this time under the ClearRidge moniker. Through his attorney, he declined the opportunity to provide information for this article. He also did not respond whether the “done deals” listed on his new firm’s website are in fact transactions completed by him. Matthew Bristow was named to the Tulsa Business Journal’s “Top 40 Under 40” in the Fall of 2008. He was nominated for such by his initial Tulsa employer that he is accused of scamming.
Of course, the above should not be construed as a claim that Bristow or ClearRidge is currently involved in any wrongdoing. Still, scams and scan artist are all around us and they costs American companies and their equity providers a bundle. The Association of Certified Fraud Examiners (ACFE) estimates U.S. organizations lose six percent of their annual revenues to fraud. Even more shocking, the U.S. Chamber of Commerce estimates a full 30% of business failures are the result of fraud.*
Here in Oklahoman we may enjoy a slower pace, friendly people, shorter commutes and more comfortable prices for everything from homes to honey, but we’re not isolated from scams and scam artists. Take heed. Don’t fall victim. The wind is not the only thing that comes “a sweepin’ down the plains.”
* citing a report by David J. Shaffer and Ronald A. Schmidt.
Written by David L. Perkins, Jr., Managing Director of Tulsa-based Acquisition Advisors and Managing Editor of The Business Owner Journal.
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