David Peter Bloom is a twice convicted American
fraudster who defrauded investors of almost $15 million in the 1980s.
Early life
Bloom grew up on the Upper East Side of Manhattan and attended
Trinity School where he graduated in 1982.
After graduating from
Duke University
Duke University is a private research university in Durham, North Carolina. Founded by Methodists and Quakers in the present-day city of Trinity in 1838, the school moved to Durham in 1892. In 1924, tobacco and electric power industrialist James ...
,
Bloom returned to New York to start an investment company under the name of Greater Sutton Investors Group Inc.
Criminal inquiries and conviction in 1988
In 1988, the
U.S. Securities and Exchange Commission
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
(SEC) accused Bloom of using his unregistered investment business to collect over $10 million between 1985 and 1988 from over 140 clients for his personal gain.
Instead of making investments on behalf of his clients, Bloom was accused of acquiring art, real estate and other personal assets with his clients funds.
Notable investors in Bloom's scheme included the
Sultan of Brunei
The sultan of Brunei is the monarchical head of state of Brunei and head of government in his capacity as prime minister of Brunei. Since independence from the British in 1984, only one sultan has reigned, though the royal institution dates bac ...
,
Bill Cosby, and the
Rockefeller family
The Rockefeller family () is an American industrial, political, and banking family that owns one of the world's largest fortunes. The fortune was made in the American petroleum industry during the late 19th and early 20th centuries by brothe ...
.
Bloom settled with the SEC without admitting guilt and agreed to hand over all his assets to a court-appointed receiver. He also was barred for life from the securities industry, including association with any broker, dealer, investment adviser, investment company, or municipal securities dealer.
Two days after his settlement with the SEC, Bloom was charged by federal prosecutors in Manhattan for violations of the registration and antifraud provisions of the
Investment Advisers Act of 1940 The Investment Advisers Act of 1940, codified at through , is a United States federal law that was created to monitor and regulate the activities of investment advisers (also spelled "advisors") as defined by the law. It is the primary source of r ...
.
Bloom pleaded guilty, waiving indictment, to one count each of mail and securities fraud.
He was sentenced to eight years in prison for defrauding investors of almost $15 million.
Bloom served 5 years out of his 8-year sentence, at the
Federal Correctional Complex, Allenwood
The Federal Correctional Complex, Allenwood (FCC Allenwood) is a United States federal prison complex for male inmates in Pennsylvania. It is operated by the Federal Bureau of Prisons, a division of the United States Department of Justice.
The pri ...
, in Pennsylvania.
Due to Bloom's young age at the time of his criminal activity, the press referred to him as a
whiz kid
A child prodigy is defined in psychology research literature as a person under the age of ten who produces meaningful output in some domain at the level of an adult expert. The term is also applied more broadly to young people who are extraor ...
; most often the "Wall Street Whiz Kid".
[
Bloom's parents were later sued for $191,250 that Bloom spent on them,]
Criminal inquiries and conviction in 2000
In 2000, federal prosecutors in Manhattan accused Bloom of grand larceny and scheming to defraud at least 10 workers at a Manhattan restaurant out of between $50,000 and $200,000. Bloom claimed to own a money management company and offered to invest his victim's money in the stock market and gift I.P.O.'s. However, Bloom spent the funds on himself.
He was arrested in June 2000, did not post the $75,000 bail set and instead was incarcerated in the Vernon C. Bain Correctional Center
The Vernon C. Bain Correctional Center (VCBC), also known as the Vernon C. Bain Maritime Facility and under the nickname "The Boat", is an 800-bed jail barge used to hold inmates for the New York City Department of Corrections. The barge is an ...
, part of Rikers Island
Rikers Island is a island in the East River between Queens and the Bronx that contains New York City's main jail complex. Named after Abraham Rycken, who took possession of the island in 1664, the island was originally under in size, but has ...
.
He pleaded guilty to the charges of grand larceny and scheming to defraud and was released in 2006 on parole.
Criminal inquiries in 2022, 2023
On 9 August 2022, Bloom was arrested on suspicion of 12 counts of grand theft
Theft is the act of taking another person's property or services without that person's permission or consent with the intent to deprive the rightful owner of it. The word ''theft'' is also used as a synonym or informal shorthand term for some ...
in Los Angeles and he posted $45,000 bail.securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in los ...
and 9 for grand theft. The district attorney George Gascón
George Gascón (born March 12, 1954) is an American attorney and former police officer who is the district attorney of Los Angeles County. A member of the Democratic Party and a former Republican, Gascón served as the district attorney of San ...
called Bloom a predator, and accused him of committing crimes between 2021 and 2023, stealing nearly $250,000 from nine alleged victims. He was being held on $505,000 bail in Los Angeles which was lowered to $100,000 at his arraignment. Under the current charges, he faces up to 14 years in prison.
References
{{DEFAULTSORT:Bloom, David P.
1964 births
Living people
American male criminals
20th-century American criminals
American people convicted of mail and wire fraud