Moriarty accused of running a Ponzi scheme

November 2, 2013
Al Moriarty

Al Moriarty

Grover Beach financier Al Moriarty is accused of placing nearly $10 million of investor funds in his personal bank account, according to San Luis Obispo County District Attorney’s office investigators.

Moriarty, 80, then used the funds to pay other investors, construction cost on his own and other personal and business expenses.

Moriarty attracted investors with promises of 10 percent interest on loans slated to mature in five years. He would then tell investors their money would be used to provide home loans to educators.

In 2012, after Moriarty stopped paying interest and told investors he was out of money, Moriarty moved to Washington. He then filed for bankruptcy, owing more than $22 million to creditors and investors.

Moriarty, 80, faces seven charges including securities fraud and scheming to defraud.

During a preliminary hearing this week, Moriarty pled not guilty. He remains in San Luis Obispo County Jail with bail set at $5 million.

 


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17 Comments

  1. Still Standing says:

    Ok, so Moriarty’s in jail with a 5ml bail and Kelly Gearhart, Jay Miller, David Graves and the REST of the bunch are running around free to do as they please!! What’s up with that???

    (4) 4 Total Votes - 4 up - 0 down
  2. r0y says:

    A ponzi scheme? What, like Social Security? Who went to jail for that one?

    (0) 8 Total Votes - 4 up - 4 down
  3. obispan says:

    Al Moriarty, like Kelly Gearhart, should be applauded for the economic stimulus generated by their “businesses”. So some people have no retirement savings anymore. Tough s**t, welcome to Tea Party gospel prosperity. Their supporters maintain that absent government regulations and fees all would be well. Their supporters are your current council members and county supervisors.

    (-16) 40 Total Votes - 12 up - 28 down
    • SLOTECH90 says:

      Gospel! Hardly. The Tea party is chock full of christian “Dominionists” (Ayatollahs) whose
      single goal is to turn this country into a full fledged theocracy under old testament law.Scary
      bunch of loony-toons.

      (5) 9 Total Votes - 7 up - 2 down
  4. tomsquawk says:

    it never ceases to amaze me how people continue to fall for these schemes. and, they end up eating dogfood and sipping Mogan David. i sure hope that while in jail Moriarty is served dogfood just like his victims……no Mogan David

    (16) 24 Total Votes - 20 up - 4 down
  5. mkaney says:

    He was not a big enough thief, apparently, to avoid the long arm of the law like the execs at citibank, bear stearns, and the list goes on…

    (35) 39 Total Votes - 37 up - 2 down
    • r0y says:

      Is it truly a theft to steal what does not exist? How much of our money do we actually see and possess? It is hard to remove ourselves from the illusion, but what really happened here and in the Bear Stearns, Citi, et. Al.? Some numbers on a screen or paper changed. For many people. That meant that other numbers on other papers and screens changed in a cascade effect. As a result of changing numbers on paper and screens, some people now eat dog foor and Morgan David (as tomsquawk mentioned)… but what really happened? Did that “money” actually exist?

      All told, I believe the actual printed and minted US dollars and cents that actually exist is around one trillion. That’s it. The rest is phantom fiat, which is mind-blowing. However, as long as we all have faith in it, it exists, doesn’t it?

      (-4) 14 Total Votes - 5 up - 9 down
    • SLOBIRD says:

      Sorry, but a thief is a thief, big or small. I have known the Moriarty family for years. Who would have thought he would have this type of greed in him. Very sad ending!

      (5) 13 Total Votes - 9 up - 4 down
      • OnTheOtherHand says:

        Way back in my early adulthood, I made an acquaintance who turned out to be a con-artist. I realize that there may be other motivations and techniques but from observing him I gather that he was a con-artist because he believed (1) that “the ends justified the means” and he really intended to pay back those he conned and (2) he was able to do what he said he would do. He was a fantastically able person in his own mind and realized that success depended upon communicating that ability to others. If you didn’t hear him often enough to catch the inconsistencies and be overwhelmed by the magnitude of his “greatness,” you could find him fairly convincing.

        Fortunately, his first attempt ended in failure and a single financial victim. He paid enough of a price for it that he didn’t have much of a future doing similar work — at least in that locale.

        (4) 6 Total Votes - 5 up - 1 down
        • r0y says:

          Well, “the ends justify the means” is the progressive mantra a la Alinsky… just saying.

          (2) 2 Total Votes - 2 up - 0 down
  6. sloplayin says:

    There’s a Sherlock Holmes joke here somewhere.Anybody want to take a stab at it?

    (4) 4 Total Votes - 4 up - 0 down

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