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Franklin advisor gets 10 years for securities fraud
Nashville Business Journal - by Jeannie Naujeck Staff Writer
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(August 11, 2009 - Tuesday) -
U.S. District Judge Aleta Trauger sentenced Grigg, well beyond the 6.5 to 8 years called for by sentencing guidelines. Trauger called the scheme a “horrible crime” that robbed some of his clients of their life savings.
Grigg, who pleaded guilty to federal charges, agreed to try to repay $6.1 million.
Grigg, 46, tried to defraud some 50 clients to the tune of $10.9 million, the U.S. Securities and Exchange Commission alleged in April as they charged him with four counts each of wire and mail fraud. However, some investors cashed out before the scheme fell apart.
In late January, a federal court froze the assets of Grigg and his company, ProTrust Management, after the SEC filed its complaint. It was also alleged that ProTrust committed ongoing securities fraud by investing in “fictitious securities,” as well as the federal government’s $825 billion bailout package, also known as the Troubled Asset Relief Program, or TARP. No such TARP investments existed.
Grigg’s attorney, Mark Pickrell of Waller Lansden Dortch & Davis, agreed to a restraining order freezing his assets.
Prior to that, Grigg was a soccer coach and avowed Christian well thought of in his community. ProTrust’s Web site, which is no longer active, at one time marketed him as a financial life coach.
But the SEC said Grigg was not a licensed financial planner nor securities broker, lied about his credentials and lied about affiliations with gold-plate financial services firms such as Goldman Sachs, Morgan Stanley, Kohlberg Kravis Roberts and Berkshire Hathaway, the holding company owned by Warren Buffett.
Grigg will serve the full 10 years and will not be eligible for parole.
Nashville Business Journal - by Jeannie Naujeck Staff Writer
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