| Conviction: | December 1988, 2000 |
| Charge: | Mail fraud, securities fraud, grand larceny, grand theft and scheming to defraud |
| Conviction Penalty: | 8 years in prison in 1988, forfeiture of US$13 million, lifetime ban from securities industry, 5 years in prison in 2000 |
| Conviction Status: | Held in prison |
| David Peter Bloom | |
| Other Names: | David Daly |
David Peter Bloom is a twice convicted American fraudster who defrauded investors of almost $15 million in the 1980s.[1] [2]
Bloom grew up on the Upper East Side of Manhattan and attended Trinity School[2] where he graduated in 1982.[3] After graduating from Duke University,[4] Bloom returned to New York to start an investment company under the name of Greater Sutton Investors Group Inc.[5] [6]
In 1988, the U.S. Securities and Exchange Commission (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.[5] [7] 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.[8] [9]
Notable investors in Bloom's scheme included the Sultan of Brunei, Bill Cosby, and the Rockefeller family.[10]
Bloom settled with the SEC without admitting guilt[11] 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.[12]
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.[4] Bloom pleaded guilty, waiving indictment, to one count each of mail and securities fraud.[13] He was sentenced to eight years in prison for defrauding investors of almost $15 million.[14] Bloom served 5 years out of his 8-year sentence, at the Federal Correctional Complex, Allenwood, in Pennsylvania.[15]
Due to Bloom's young age at the time of his criminal activity, the press referred to him as a whiz kid; most often the "Wall Street Whiz Kid".[13] [14]
Bloom's parents were later sued for $191,250 that Bloom spent on them,[16] and they settled for $30,000.[17]
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.[18] 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.[19] 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, part of Rikers Island.
He pleaded guilty to the charges of grand larceny and scheming to defraud and was released in 2006 on parole.[20]
On 9 August 2022, Bloom was arrested on suspicion of 12 counts of grand theft in Los Angeles and he posted $45,000 bail.[20]
On 28 August 2023, Bloom was arrested again and this time was charged with 18 felony counts: 9 for securities fraud and 9 for grand theft. The district attorney George Gascón called Bloom a predator, and accused him of committing crimes between 2021 and 2023,[21] stealing nearly $250,000 from nine alleged victims.[22] He was being held on $505,000 bail in Los Angeles [23] which was lowered to $100,000 at his arraignment. Under the current charges, he faces up to 14 years in prison.[24]