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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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