This is the story of a fraudster who failed to use his second and even third chance. He rose to prominence as a con artist in the 1980s, when he was convicted of scamming investors out of about $15 million. Following his release, he conned even more people, this time in Los Angeles rather than New York. Learn more about con artist David Bloom at los-angeles.pro.
American con artist of the 1980s
The man grew up on Manhattan’s Upper East Side and went to Trinity Preparatory School, an independent day school. He later enrolled at Duke University, a private research institution in Durham, North Carolina. Following graduation, he started Greater Sutton Investors Group Inc., a New York-based investment company. Subsequently, the New York Times published an article accusing the 23-year-old investor of a major fraud. The material detailed the young man’s luxurious lifestyle and the great deception. It is worth taking a closer look at what exactly David Bloom was accused of.
Between 1985 and 1988, the individual raised more than $10 million through his unregistered investment company. He deceived more than 140 clients. The number was estimated by the U.S. Securities and Exchange Commission in 1988. David Bloom did not use the funds obtained for the intended purpose, which was to invest on behalf of his clients. Instead, the man used the money for the purchase of art, real estate and other personal assets.
Among the well-known investors who were scammed by David Bloom, the following should be highlighted:
- The Sultan of Brunei. This is the monarchical head of state of Brunei, head of government as prime minister of Brunei.
- William Henry Cosby Jr. He is an American comedian and actor who was the first African-American to pursue a career in the entertainment industry. He is most recognized for his live performance as Cliff Huxtable on the sitcom “The Cosby Show” (1984–1992).
- The Rockefeller family. It is a family of industrialists, politicians and bankers that owns one of the largest fortunes in the world. The family is one of the most influential in American history.
The story of infamous success: How did the young man deceive famous and wealthy people?
David Bloom’s story of fraud demonstrates that anyone, regardless of wealth, fame or influence, can become a victim of fraud. There are several plausible explanations for David Bloom’s success.
- He made effective use of information about victims to appeal to their values, ambitions and fears. He devised intricate financial strategies that an inexperienced person could not uncover. At the same time, he did not fail to mention his connections to other influential politicians and celebrities.
- David Bloom took advantage of people’s greed and desire to get rich quickly. Furthermore, the possibility of investing in projects alongside other powerful people piqued their interest by creating a sense of exclusivity.
- Victims did not receive recommendations about Bloom from others, nor did they thoroughly look into his offers.
- In addition, Bloom was able to successfully conceal his fraudulent activities due to the complexity of financial strategies.
«Wall Street Whiz Kid»
In 1988, David Bloom was sentenced to eight years in prison for defrauding investors out of almost $15 million. He served five years of his sentence at the Federal Correctional Complex in Allenwood, Pennsylvania. David Bloom was dubbed the “Wall Street Whiz Kid” by the press due to his young age while engaging in criminal activity.
Second conviction
In 2000, the man was convicted again. This time, the figures were less significant, but the deception strategy was similar. The Manhattan federal prosecutor’s office charged Bloom with theft and fraud against at least ten employees at a Manhattan restaurant in the amounts of 50 to 200,000 thousand dollars. He claimed to be the owner of a money management company and offered to invest money profitably. As he did the previous time, David Bloom used the funds he obtained, only on his life and needs.
In June 2000, he was arrested and unable to pay $75,000 bail. So, he was detained at the Vernon C. Bain Correctional Center. In 2006, he was released on parole.
Third arrest
For a while, there was no news concerning David Bloom, perhaps he tried to live as an obedient citizen. However, on August 9, 2022, David Bloom was arrested in Los Angeles. He was charged with 12 major thefts throughout the city, and bail was set at $45,000.
On August 28, 2023, he was arrested again and charged with 18 crimes committed in Los Angeles: 9 were related to securities fraud, and the remaining 9 were large-scale fraud.
The former Los Angeles County District Attorney (December 7, 2020–December 3, 2024) described David Bloom as “a predator who hunts victims all his life.” This time, the people of Los Angeles became victims, as he took about $250,000 from nine potential victims. According to prosecutors, he took money in exchange for fake investments and financial opportunities.
This time, the bail in Los Angeles was 505,000 dollars, but it was eventually reduced to 100,000. He was sentenced to 14 years in prison.
Fraud victims in Hollywood
It is known that David Bloom found his potential victims at Hollywood apartment complex. This is the historic Villa Carlotta apartment complex on Franklin Avenue. He was frequently seen in neighborhood bars. Caroline D’amore, a former reality TV contestant and the proprietor of Pizza Girl, a company that creates organic pasta sauces, was among the victims. David Bloom, she alleged, sent her and other business partners to Texas to meet with the CEO of Whole Foods. The woman was convinced she was communicating with this particular individual. Caroline is disappointed with the situation and the fact that she was duped for $35,000. According to her, the fraudster was fully aware of what he was doing because he was preying on people’s hopes, dreams and beliefs. At the time, the woman was a single mother going through a divorce. She aspired to run a food business. Caroline claims that David Bloom has no limitations and will do anything to deceive you.
As for local bars, one of the swindler’s favorites was the Frolic Room on Hollywood Boulevard. The restaurant has been serving customers since the 1930s. Bartender Troy White remembers David Bloom, who in 2021 came to the restaurant nearly every day for lunch. The bartender was persuaded that the man had business appointments, so he was startled to discover that Bloom was a con artist. According to several bar patrons, they later avoided sitting next to him or talking to him in every possible way.
In the same bar, David Bloom moved slightly from the well-worn and effective narrative. This time, he convinced the pub guests, including the bartender, that he was purchasing Super Bowl tickets. Kyle Crichton, a bar patron, said it seemed very convincing because the individual claimed to have connections with Stan Kroenke, the owner of the Los Angeles Rams. He claimed to have reserved seats in the owner’s box, where all the guys were expected to gather. About 20 bar customers agreed to such a pleasant offer. On the day of the meeting, he sent a message in which he stated that his sister had died in a car crash.
It was a cheap manipulation and a lie. On the same day, David Bloom played pool in another bar and never visited the Frolic Room again.
In 2024, the man was sentenced to 14 years in prison for his crimes, so he will not be able to visit Hollywood places anytime soon.
