Over the years, Lou has received more than $4 million in payments from Mac.
Realizing the scope of the case, Vermont investigators call in the FBI.
The investigators are left wondering, who really is the mastermind behind this crime?
For instance, if you are looking for a job you are more vulnerable to a work-at-home scam.
If you haven’t listened to Part 1, now is a great time to do that.
[00:00:43] Julie: This is Bill Carrigan, lead investigator on the case.
Mac had funneled off close to $4 million to Lou.
So that was really when it all came tumbling down.
We filed charges to freeze his bank account.
Our case was stayed while the case was going through, you know at the federal level.
I have him on the line with me now.
Let me start by asking you why did the FBI get involved in the Mac Parker case?
[00:02:02] Julie: So who is this Lou Soteriou.
For starters, he’s a chiropractor.
Lou and Mac met when Lou was doing chiropractic work on Mac’s wife in the late 1990s.
Mac’s wife had been suffering from chronic fatigue syndrome and responded well to the treatment that Lou offered.
So he had this, not weird, but he had a strong devotion to Lou.
[00:03:29] Julie: It was at that point that Mac started traveling around the state to fundraise.
He was relying on that to gain their trust.
All of whom had been promised rates of return as high as 30%.
[00:04:19] Dan Rachek: He raised about $30 million from about 2000 through 2009.
People kept investing; their interest rate kept going up.
[00:05:04] (film clip) Life is a forest imbued with love.
[00:05:20] (film clip) It’s natural momentum is joy.
That was all Mac and the people that Mac hired.
[00:06:25] Julie: Mac’s investors start to catch on.
And Dan, with his team of investigators get to work.
They pay Lou a visit.
[00:06:33] Dan Rachek: He was living um, at that time with his parents.
You know and we, we saw a man that was just didn’t appear to be mentally stable.
[00:07:12] Julie: Did you make any other discoveries in speaking with Lou?
So, so we realized now we have an investment fraud.
Then we started reviewing all the records.
We now had a complete list of all the investors.
[00:07:52] Julie: What did Mac and Lou with the money?
It was the money they traveled back and forth to Middlebury for these treatments.
[00:08:20] Julie: Do you think they ever thought this plan through to the end?
So he would know the numbers, and that’s how he planned to pay back this fraud.
[00:09:14] Julie: That’s certainly an interesting payback plan.
What happened to Mac and Lou after they were caught?
And then once Mac came in and pled guilty, then Lou pled guilty shortly after that.
[00:09:47] Julie: Any final thoughts?
How does this case stack up against others?
I just think, just an odd story.
Um, and kind of sad for all those people that lost so much money.
[00:10:23] Dan Rachek: Dan Rachek: No, no.
(chuckle) To say the least.
[00:10:32] Dan Rachek: Thank you.
In all the cases that you’ve seen, what stood out to you the most?
[00:10:42] Bill Carrigan: The biggest surprise for me was Mac’s ability to raise money.
[00:11:33] Julie: The broken trust is the thing that stands out to me the most too.
[00:11:53] Pedie O’Brien-Brisson: Not to be quite so trusting.
I just pick it up and hang it up and that’s it.
You know, we still don’t have any hate in our hearts for Mac.
Life’s too short to worry about stuff like that.
We never said we hate Mac, because we’re not that kind of people.
[00:12:56] Julie: Trust is at the heart of the investor relationship.
And scammers like Mac Parker know it.
With me now is Gerri Walsh, President of the FINRA Investor Education Foundation.
Gerri is going to give us tips on what we can do to avoid investment fraud.
Gerri, thank you so much for being on the podcast.
[00:13:15] Gerri Walsh: Thanks for having me.
What are some of the characteristics of a Ponzi scheme, and how can we avoid them?
[00:14:50] Gerri Walsh: A Ponzi scheme can be difficult to spot.
And that’s how Ponzi schemes work.
[00:15:48] Julie: Gerri, why is the Ponzi scheme so successful?
And what makes it so unique?
And so, producing a movie, right.
Um, so that they let their guard down.
What are some of the biggest things you’ve learned or discovered um, when speaking with them?
And so, if you want to take a play from the fraudster’s playbook, start asking questions.
And asking questions about their credentials.
Where are they licensed?
Have they ever been in trouble with regulators?
These are important questions to ask.
Every investor should ask them.
And you’re able to check it using FINRA Broker Check.
But also, for the investment, you know, how will it make money?
How can it lose money?
How do I get my money out?
How long will my money be locked up, you know, give me audited financial statements.
Ponzi schemes almost never have audited financial statements.
So, when clean energy was hot, we saw a lot of clean energy scams.
Some investment professionals sell a very limited range of products.
Others sell a lot of products.
Are you able to sell me a wide range of securities, or do you only sell specific types?
Do you get more compensation if you sell me an annuity product compared to a mutual fund?
All those kinds of things are important for investors who are getting ready to invest.
[00:21:08] Julie: Great, excellent advice.
[00:21:15] Gerri Walsh: Thank you.
Is it narcissism, an inflated self-importance?
I mean who are these characters?
[00:21:41] Frank Abagnale: Everything you say and also that no compassion.
They’re not concerned about that they’re stealing these people’s money.
What can enhance me?
You’re kind of saying, wow, I’d like to be, do business with this guy.
He’s obviously a very nice guy, a very compassionate guy, he cares about people.
And then you hear about all of these returns from people.
And that’s what they do.
She didn’t have a dime to her name.
She was from Europe.
She started mingling with very wealthy people.
She said she was worth millions of dollars.
She’s a multi-millionaire from somewhere.
[00:23:44] Julie: All right, Frank.
Thanks so much for being here.
[00:23:47] Frank Abagnale: Thank you, Julie.
Be sure to find us on Apple Podcasts, Spotify, or wherever you listen to podcasts.
For AARP, The Perfect Scam, I’m Julie Getz.
