Danny Jones Podcast - #35 - The $500 Million FOREX Ponzi Scheme | Matthew Cox

Episode Date: February 28, 2020

This episode of the Koncrete Podcast tells the story of a kid in his mid 20's named Blayne Davis who managed to steal millions of dollars utilizing foreign exchange market trading, otherwise known as "FOREX" trading. Blayne was so slick, that once the market crashed in 2008 and the federal indictments started closing in, he was not only able to syphon millions of dollars offshore, he was able to shift all the blame onto one of his biggest victim investors by the name of Donovan Davis. Blaynes multiple ponzi schemes were ultimately rolled into the largest Forex ponzi scheme in history.  Read the full story of "The Gap" here: http://bit.ly/2SXuh3S Learn more about your ad choices. Visit podcastchoices.com/adchoices

Hello, world. On this week's episode of the Concrete Podcast, we're back with everyone's favorite con man, Matthew B. Cox. This podcast tells the story of a kid in his mid-20s named Blaine Davis, who managed to steal tens of millions of dollars utilizing foreign exchange market trading, otherwise known as Forex. Blaine was so slick that once the market crashed in 2008 and the federal indictment started closing in, he was not only able to siphon millions of dollars offshore, but he was able to show. shift all the blame of his Ponzi schemes onto one of his biggest victim investors by the name of Donovan Davis. Blaine's multiple Ponzi schemes were ultimately rolled into the largest 4x Ponzi scheme in history. Blaine is scheduled to be released in April of 2021. Yet his victim investor Donovan, the one he was

able to shift all the blame onto and the only innocent man in the story, still sits in prison with a decade left to serve. This might be one of the best stories Matt's ever told on the show. We really enjoyed it and I hope you do too. Enjoy the show. What's up? Double, double ventees. They fuck the coffee up. Matt's rocking the double vente. What's in that? We're in those cups. What's it missing? The sugar is probably at the bottom.

It's all right. I drink a little bit and I'll stir it up. How much sugar? How much sugar you put in the coffee again? Eight raw sugars. Eight raw sugars per cup. It's a vinty vanilla latte with eight raw sugars and I got two of them. So this one I drank on the way here. Okay. make sure that thing's empty

What's straight sugar at the bottom Octane baby Oh yeah That's the good part On this one so that's good Okay so All right Back by popular demand

X con man and true crime author Matthew B Cox What's up Matt Thanks for coming back All right I'm excited What are we going to talk about today Today is about a story I wrote about a guy named Donovan Davis, which is locked up in Coleman.

And it's, you know, honestly, it's really more about Blaine Davis, which is a con man that has run, I guess, three Ponzi schemes. And it's currently in prison right now, but being released in a few years, unlike Donovan, who's serving 17 years for being duped by being duped into uh into participating in a business that ended up being a Ponzi scheme

that he was unaware it was a Ponzi scheme so that's really uh okay exciting yeah how come all these comment what's up what's up want me to look at this do you want me to hold this and make sure I can the same thing that happened last time what happened last time I mean what happened last time I mean what happened last

time you said, hey, make sure you get some talking point. Prepare something like, I'm unprepared. I didn't say that. Yes, you did you sit me I'll give you the text. You were like, send up some talking points. And then I prepared talking points. I spent all day preparing talking points. And then you guys were like, where's my talking

points? Shit, bro. What's up? This is a podcast, Matt. It's a podcast, bro. We just talk. Apparently everybody hates when I fucking talk or when he fucking talks. They just want you hear you. I mean, they love you. How were the comments in that last one? they were vicious like I read like

I read like the first like there's some venom-filled people on there they were spitting some hate what are they saying oh are you do you even read them? Yeah yeah Danny sends me a couple here and there I just read of them you love

there were there's fucking there's like there's probably a thousand now I get to a point where I read like 10 and I was like because this is different this is vastly different than that I kept reading and when I got to like 50 or 60

I was like, fuck, I don't even think I want to call. I was going to call, I was like, when I first fucking 10, I thought, maybe I should call Danny and say, have you seen these? But by 50 or 60, I was like, fuck, this is bad, bro. 95% of them are those two fucking morons. Quit fucking interrupting Matt Cox, you piece of shit. I was like, God damn, this are vicious. I'm not, I mean, I'm used to guys being rough around the edges,

but it is pure venom. Are they that vicious? prison? No. No, it's more like you stop saying thank you and please. You stop. You're just, you're just like, you know, it's like, hey man, let me give me some, let me get some sugar. Yeah, all right, man, I got, all right. You can't even be that vicious in prison because you'll get your ass kicked. Yeah, you're too, yeah, you couldn't see the stuff these guys are saying. Yeah, there's no limits on the internet. Fucking dumb, what kind of motherfucker doesn't know what Sodom and Gamora is. Oh, yeah.

I know what the fuck son. You fucking millennials, these fucking millennials. I'm like, God, I remember when I finally, I said, listen, man, I wasn't going to say. say something. That's the first text I said. Who doesn't know what Sodom and Gamora is? Come the fuck on. This is bad. I was like, have you read these? And you were like, yeah, bro, they're pretty bad. Then you got to the point after you read enough of them, you were like, hey, did you read

this one? This was pretty good. Listen to this one. I'm like, yeah, if you get over the fact that they're being vicious, it does become comical. You can remove your own from the situation. But even when I was like, oh, look, here's, oh look, here's one. Look, Matt, bro,

you're fucking awesome. you did great except for those two fucking moron those motherfuckers I was like God some guy called me a 200 pound hat rack Oh yeah by the way If we can get that guy

That was the best one I ever read If we can find the guy who left the comment What was his name? I don't remember We have the screen shot of it But if the guy We'll send you a free sweater for that Leave a comment on this one

The guy who called him a 200 pound hat rack And we're going to send you a box full of free shit Free merch Free concrete merch Oh God All right We want to keep those people around. Yeah, we love that shit.

They're entertaining. I hope they keep fucking going off because that's fucking great. Yeah. So how did you meet Donovan in prison? And how did he kind of, how did he introduce his story to you? Donovan is, I don't want to say Donovan's six foot tall. God, he's got to be at least probably 300 pounds, big belly. He used to have a beard.

which he would he would get like you know cut like really specific and he would he told me well I get it cut like he called it facial architecture he said it makes it look like I still have a jaw line he's into that shit yeah it doesn't

I mean he's just a big teddy bear you know what I'm saying he's just a big guy he says he's Jamaican and he is Jamaican but his ancestors are from India so he's just a big Indian guy who's with a Jamaican accent. And really, he can turn it on and off.

And he's just a big teddy bear. He's the nicest guy. And I forget what happened. We, we got, he was new to the unit. And he, he looked at me a couple times. We did the nod. And then somebody said, hey, he's here for fraud. And then I don't know, one day we were sitting there talking.

He goes, well, what kind of fraud are you here for? And I said, bank fraud. And I said, what are you here for? He was like, it was a Ponzi scheme. And I was like, oh, we, I said, well, what did you get? He's like, well, I didn't get anything. I go, well, what did you do? He's, well, I'm innocent.

Yeah, bro. Yeah, right. Nice, I like it. You played it all the way to the fucking hill. That's kind of a red flag that he actually may not be a con man. If he said that he's innocent, right? Oh, yeah, he's, he's absolutely not a con man. I mean, when you talk to him, you realize he's a dup.

He's the kind of guy, and I used to joke with him all the time. He's just, he believes pretty much anything you tell him. He's just very much a nice guy who worked hard, his family worked hard, and they have money. family came over from Jamaica. They started working like in a, like they started off as mechanics. And then eventually they, they started doing excavation and some land work. And before you know it, it starts taking off. And they end up owning a company.

Like I said, they sell dirt. They go and they lease huge plots of land. They go in, they dig out these huge ponds. And they just sell the dirt. And that's all they do. I didn't even know that was a thing until he told me. And it's, it's huge. So matter of fact, I was going to say,

you ought to go talk to his father and see if his dad will put up some fucking, uh, and sponsor the fucking, uh, podcast. I was going to mention that. That wouldn't be bad. Why would his dad sponsor? I don't know. He's got to, he's got to advertise somewhere. Who owns the dirt company?

He has dad, he wants to advertise his dirt company on here? I don't know if he does or not. Oh, well, speaking of, it's worth talking, and walking a phone call. Speaking of sponsors. Okay. This episode of the concrete podcast is brought to you by.

Get the fuck out of here. Bud Light Are you serious? Thanks to Matthew B. Cox We now have enough viewers to get sponsors They sent us one 12-pack Bud Light, buy a 12-pack No

Icey Cold Brain Octane I don't know his P.O. is going to like that. Who? What? Oh no, I was talking about the Bud Light sponsorship. Oh, she'll be fine. She'll be fine. She'll be fine. She came by my house today. I peed in cup.

She's happy. Did she? I'm sure. It's going to be turned out fine. She's good. Are you allowed to drink? She mentioned you. Did she?

She goes, you know, that guy? She said, like, his voice totally matches his, his, what he looks like. I started laughing. I started laughing. I don't know if that's a compliment or not. I don't know, but it made me laugh. This is the gap. So I ended up writing Donovan's story because I started talking to him and he explained about

his story. And basically, and what's great about Donovan, a lot like, got a lot like, who else? Like Rossini or Deverelli is that these guys are still fighting their case, so they have lockers full of stuff. So if you say, if I said, well, when did that happen? Hold on. He'd go pull it out and bam. Here, July 2nd, 2009, 2008, whatever.

So he had all the documents. So it's perfect. So, yeah, so basically there's a guy named Blaine Davis. No relation to Donovan Davis. So Blaine, Blaine was born in, I want to say Germany. He was born overseas. His father was in the military. He's been in a bunch of different branches of the military.

One of the things that Blaine used to tell people was that his father was in the CIA. His dad was in security and did security work and defense contract work. But I don't know if he necessarily was in the CIA. He might have been the CIA. I think he did do work for the CIA. at one point. So he's done work for all kinds of different branches of the government. So he was raised like a military brat moving around all the time. And eventually when he became, he was in his 20s, he wasn't making very much money. He wasn't going to school. They had dropped out of school.

And he started doing 4x trading. But he's not making a lot of money. What is 4x trading? Sorry to interrupt. That's all right. Forex trading is when you trade, you basically, it's like you're betting a the rise and fall of different currencies. So it's currency trading. You're betting that the dollar will be worth more than the euro or whatever. I don't know the exact what the definition of a Forex trading is. But I'm sure I'm sure I just fucking said it wrong.

Basically, you can buy options. And you bet that it's going to go up or down and then you get whatever the spread is. And they'll do it on like a fraction. And so they end up, you can end up really leveraging what you've got. The problem is you can lose everything you've got. The real problem with the whole market is that if I'm winning, somebody else is losing. So it's kind of a back and forth that's, you know what I'm saying? It's not like the stock market works.

Like betting sports. Right. Yeah, somebody's winning, somebody's losing. Exactly. But Blaine starts doing Forex trading. So he's representing some guys. He's using their money. He's investing their money.

But he's not making a lot of money. You know, he's very charismatic, good-looking guy, and very flashy, but he's not making a lot of money. And so he ends up watching the movie The Boilerm, and he gets inspired by the movie The Boiler Room. And basically, the reason I know all up, like, I have all the documents, right? And he actually, this is what kills me, is that when he was actually interviewed, he actually tells the fucking IRS agent, which investigate, he actually tells them he was inspired by the movie, The Boilerm. Nice. The fuck says that. That's like saying, you know, it's like, oh, yeah, I was inspired by Goodfellas.

So, and the boiler room is a movie about, it, it's just huge fraud. Right. So what he does is he goes out and he convinces, Blaine convinces a bunch of his buddies. and to invest money with them. So give me 10 grand. I'll put it in the in the, in Forex, and I'll make you, you're going to end up making, you're going to make $11,000, $12,000, whatever it may be. So a couple guys, give them, gives it five grand, 10 grand.

It starts small, but very quickly these guys are making huge amount of money back. So they turn around and they say, okay, I'm going to go to my sister. I talk to my sister. Now, next thing you know, this guy's putting in 20 grand. His sister's putting in 30 grand. This guy's putting in 10 grand. One guy put in, I want to say $120,000. Blaine ends up, the dollar amount varies,

but basically the main number ends up being between like half a million to a million dollars he takes from these guys. Friends and friends of friends. He ends up convincing one guy to help make spreadsheets to track how the money is growing. The fact is the money's not growing at all. It's a Ponzi scheme. Guys are giving you money in. And then when you ask for your money back, I just give you your money back plus a little bit of Danny's money.

So you think I just made 20%. Danny still thinks his money's in the account. Danny's money's not in his account. I spend it on my new Mercedes. And then when Danny says I want my money back, I just take it from Bob. I give Danny's original amount back plus what Danny earned. So you're paying new investors with old investors money.

You're just hoping that all the investors don't ask for their money back at once. Absolutely. Because then you go under. Well, that's what happens with. with Blaine is that eventually he's one giving too much the returns are too high you know he's not he's not

he's not he's not he's not Bernie Madoff yeah he's giving him too much money back right Bernie Madoff was giving you enough that you're doing you're doing better than everybody else but not so much that it's not that it's not unreasonable yeah and so he was able to go forever Blaine's not that sharp

Blaine's giving guys huge returns and so eventually he can't pay out the returns and one or two people ask for their money back and then he spends them and he spends them and he you know oh i'm i'm i'm in europe right now or oh my my my phone uh it doesn't work i couldn't return your email oh didn't you get the wire didn't you get the white i've read all the excuses how old is this how old is he at this point by the way is early 20s early 20s yeah so yeah so bro and i mean you know anyway he's uh you got to be

smart in your early 20s to at least even know about all this type of stuff for us trading and shit he's sharp he's sharp he's sharp he's sharp and obviously he's ruthless. Yeah. So people are pulling money out of their things. He's convincing people to pull money out of their 401k. Get 30 grand out of your 401k. Give me 30 grand.

I'm going to have you $45,000 within six months. You never get your 40. You're not getting your 30. Right. So this goes on and on and eventually these guys kind of start grouping together because they do know a lot of one another. So eventually a group of like I think seven or eight of them get together. They track him down at his house.

And, oh, yeah, this is the video. The video. You have a video of this. I have a video on my website inside True Crime, which is on YouTube. And it's the video, one of the guys brings the video camera and videos them confronting him. And he's all, they're telling him he's going to sign this piece of paper. You're going to this. He's all like, well, how much time do I have to give the money back?

And at one point he says, he's like, well, I don't feel comfortable with all you guys are pressuring. And they're like, we don't feel comfortable with you stealing from us. He's like, all right, right. So he signs. And one of the guys, the very end of the video, they cut it off. One of the guys is like, look, if you don't have the money by like Monday or something, they're like, we're going to come back here. He goes, I'm going to come back here with some other guys that aren't like these guys. You would be sorry.

And they cut the video. So it's pretty funny. But, yeah, it's on the website. So, okay. And basically, I know about that whole scam because it was all in the FDL-E report, which I have to, whole FDLE report, but let me keep, let me flip through here just so that I can keep up with where I'm at. He loses the money. So basically these guys end up, they go to his house, he doesn't have the money. They say, he says he's going to have the money, he doesn't have the money.

Right. And eventually he just moves. Okay. Picks up his shit and he moves. Naples, right? Yeah, moves. Exactly. So he leaves Orlando, moves to Naples. Where is that?

That's Melbourne? No, Naples. Naples is on this coast, in the Gulf Coast. Okay. It's probably like two hours south of St. Pete. So when he's there, he meets a guy named Damien Broomfield. Damien is kind of a computer geek. And he's working IT for some company.

And he meets Damien's girlfriend knows Blaine's wife or fiancé or whatever. And they end up at a party together and they start talking. sees that he's driving a nice new Mercedes or whatever. And so they have a little chit-chat. And they both kind of fancy themselves as being, you know, savvy business guys. And so Blaine starts talking up, Damien, tells him about how he's in 4-X, making a bunch of money, doing really well. They hit it off and they decide to go ahead and start, or Damien decides to give him some money to invest. So he gives him like 50 grand to invest.

Is it 50? Yeah, it's 50 grand to invest. So he gives him like 50 grand. And blame basically blows that money. And so when Damien comes back for the money, he says, he convinces him, listen, let's open up a business together. We'll open up a 4x trading company.

We'll trade 4X. It's like a hedge fund. or something where you guys will invest and we'll invest their money. So I don't quite know if Damien at that point knew his money was gone or if he just kind of joined him. He very quickly realized his money was gone because Damien immediately turns around and starts raising money. Well, the guy that Damien knows that has money is a guy named Donovan Davis.

So he goes to Donovan and he says, hey, Donovan. Donovan's driving a Porsche. He's got a Lamborghini. He's got a Bentley. Explain again how he has money, what his business does? He has money. His parents came here. They started a company eventually, and they buy and sell dirt.

Yeah. Okay? So, not buy and sell. They buy land. They dig it up. They sell dirt. I don't think they're buying dirt. So they're selling dirt.

Technically they are. Basically, what they do is, I think all of Brevard County is like two or three feet under sea level. So to build on it, you can't build on anything that's not sea level. So they'll sell you the dirt to build up the land to build your house or build your subdivision. Right. Fill dirt. That's smart. You own the real estate and you just mine it for fucking revenue.

They don't even own the real estate. They don't even own the real estate. Oh, really? So you have 40 acres. They come in, they say we're going to lease it for the next two years and we're going to dig out X amount of dirt out of your land. And when you're done, you're going to have a bunch of huge ponds and you can turn around and you can sell it to a sub. and create a subdivision. Now you can basically have lakefront property.

Wow. And they go, okay, cool. So they go and they dig a big a bit, dig here, dig here, and when you leave you're happy, they just, now it's a bunch of ponds. So I got this lakefront property. I can have a developer come in, put it in the roads, and I can sell it off at that, like that.

They're happy because they've been able to sell that fill dirt. Yeah. So everybody's happy. So that's what they do. And Donovan, when he graduates high school, and he's always been working on. I got pictures of him on my website, inside truecrime.com.

So pictures of him and his brother working on the, working on excavators, working on tractors. I mean, little tiny kids. So they have a, what was that show, the Gold Rush show where they have the big dread, the dredges? Yeah. They've got a dredge. Damn. I mean, they're not fucking around. Yeah.

So he's been doing this this whole life. So he comes into the business. He starts working the business and he said very quickly he ends up going into the office. office and the business ends up just booming. Like he really takes it from being this business that's doing well to really doing well. I forget the number what they, how much it grew after he got in and really started. They were doing like in the millions per month, you said. Right, right. It was, it was a huge amount of money. So he's making a ton of money. Like I said, Lamborghinis. You see his fucking house, man. It's a mansion. All from selling dirt. From selling dirt. That's nuts. So he's doing

great. Damien knows him. The families know each other. Damien comes in and says, look, man, I'm starting this, this, uh, 4x company. Uh, it's a, we're doing management. We're during four X trading and we're going to, we're taking, you know, you should invest. I'm telling you easiest money you ever made. I can make you a bunch of money. Go to the website. Check it out. So Donovan does. Eventually Donovan's dad's like, look, you know, he keeps hounding Donovan. He's like, look, man, he's trying to start a business. Give him some money. So Donovan is all right. fine he gives him like 50 grand well like a month later donovan's made like three or four grand off a 50 in a month he's like fuck he gives him another 50 and he goes online he checks and he checks

it out and he's like yeah look I made the money that money's gone bro that money almost that money went straight to damien and to um and to blaine it's like almost like a few thousand dollars was actually put into any trades so he gives him another 50 grand gone give him him a hundred grand. Then he invites Damien to go talk to his family. Donovan comes in and says, man, I'm making a bunch of money. I'm getting like 7% 8% a month. That's like 70% a year. It's like, I'm sorry, it's like 80 something, 84% a year.

I'm, I'm going to double my money. This is amazing. Yeah, he goes, yeah. And of course, Damien said, well, I don't know much about it. But Blaine is a master trader. He knows everything about it. Blaine's a hit or miss guy. I mean, it's difficult to make money in 4X. So, anyway, next thing you know, his aunt and uncle put in money. His, they put somebody, who is it put? Oh, his best friend puts in like 50 grand.

They put in another, somebody else puts in like 100. Somebody else puts in 50. Somebody else, next thing you know, he's raised like half a million dollars from his own family. So, and this is, you know, Donovan's, yeah, That's great. Damien, yeah, I'm a friend of the family. So, you know, it's a, I think it's called an infinity scam, where you go to your friends and family and they become your first victims. So it's fucked up. So they make a bunch of money. Well, then Donovan gets invited to several of these, of these conventions, these like, they're like meetings where the people come in and you try and get investors and you sell, they sell software, trading software, and they sell different, they talk about different platforms and companies, companies, Like a trade show. Like a trade show.

But they also kind of teach classes on it. Well, Blaine's there and Blaine's teaching the classes. So when Donovan gets there, he's like, fuck, this is the guy, this is your partner? Yeah, man, he's a master trader. Well, Donovan speaks with several guys from like, PFG was the biggest Forex trading company that was out there. Right? They were like a billion dollars or something outrageous. So Donovan's there talking with these guys.

And these guys are like, oh, this guy's amazing. This guy, Blaine's phenomenal. Everybody could say nothing but amazing things about Blaine, how wonderful he was. So Donovan's like, wow. Well, they keep raising money. Eventually, they come to him. Eventually, they come to Donovan and they say, listen, you know, at this point, Donovan's put in, I think, him and his family put in like $2 million.

So they're doing pretty good. So Damien and Blaine are doing pretty good. So they come to Donovan, they go, listen, man, you've helped us out so much. We're going to give you a third of the company for $600,000. So you give us another $600,000. We're going to give you a third of the company. And so he, I just remember when he told me that, the first time he told me that, he was telling me the story.

He goes, yeah, so they were going to give me a third of the company. I remember, I go, I go, why? He goes, what do you mean? I go, why would they do that? Yeah. And he goes, well, you know, because I'd helped them out. I said, right, you gave them $2 million. They're not making the whole $2 million.

They're making a small percentage on the trades. Yeah. Why would they give you a third of the companies? Well, I was going to give them $600,000. I said, yeah, but they're doing well. And they're just going to continue to do well. And you're already raising the money for nothing. For free.

You're already helping them, introducing them. And all of these people are making money. So this thing's going to spread very... Ponzi scheme doesn't need a lot of advertisement. It spreads pretty quickly because it's so phenomenal. Word of mouth. Right. So why do they need you?

I didn't know. I really knew nothing about his story at this point. But instinctually, I knew something's wrong. Yeah. You don't hand something over for $600,000 that to me is going to be worth hundreds of millions. Right. And he goes, well, I... I, yeah, I don't know.

I mean, I gave him the 600,000. And so, yeah, and I was like, and he goes, yeah, I mean, he goes, it was a scam. And I go, what do you mean? He said, it was a scam. They, they came to him. They said, give us 600,000. And all you've got to do is raise money. So one, I get you for 600,000 more.

And you bring in more money. And I bring you in and give you an incentive to raise money for me. And so that's what he does. He has his lawyer, look through the paperwork. His lawyer does due diligence, checks out the whole model, checks out everything, checks out both Damien and Blaine and says, these guys are amazing. This guy, Blaine is phenomenal. This is a great business opportunity. By the way, Blaine had been arrested several times.

The lawyer still said he was. How do they come up with all that paperwork and stuff? They're making it and stuff? Who? Damien and Blaine, all this paperwork for. Yeah, it's not hard to come up with a. bank statement? You just got to come with a bank statement. Damien can do it. That's it.

Yeah, he's got a, he's an IT guy. Yeah, that's how he made up the fake website, right? Yeah, he's got the numbers. He's got everything. Listen, I can come up with a couple of the dummy website that'll fool you. So, and this guy's got a degree. So he knows what he's doing. He totally, fine arts, period. I was just going to say that.

So you haven't looked at that once. Okay, what ends up happening is Donovan puts in the money He starts raising money and starts raising a lot of money They get a big office They've got a bunch of these They got an office like in It was in Naples, one in Melbourne

They've got So they're kicking ass They're raising money Eventually this guy by the name of Chris Roman Daddy comes in And listen, Blaine Blaine is good Okay, he's very good at what he does.

And I have an example that I use in here. The example is that Blaine at one point goes to Chicago. So I'm pretty sure it's Chicago. So at one point, Blaine goes to Chicago. And he's going to strip clubs and he's blowing money. The strip clubs are actually outside of Chicago. You have to drive there. I think they don't have any inside.

But anyway, so he goes to the strip clubs. He's blowing money. well one day after he gets into a limo and the limo driver female driver hears him bragging about how he's blown like 20 grand or something he blew over 20 grand in the last couple nights on strippers and she goes what do you do for a living and he says i i i own a i'm a four-x trader and i own part of a four-ex company called capital blue and they came with the name capital that was the name of the company capital blue why they call it that um he thought i one I don't know why he came up with capital blue,

but I do know that he said blue, B-L-U, he knocked the E-off because he thought it made it sound more trendy. I actually have that in the thing that they explained, they ask. And he goes, I knocked the knee off, the E-off because it sounded back. Blue, now that's an E-Sig company. Yeah. for my child's college fund. She says, maybe I should give it to you.

And he said something like, our minimum, our minimum is like 40 grand or 50 grand. I thought he said it was 100 in the story. No, and what did he say it was 100? And the audio, but the audio,

when you sent me, he said the minimum was 100, but I guess I do it. No, no, no, 100 percent. He says, yeah,

you're right, 100,000. Yeah. He was the minimum is 100,000. He said, but I like you, I'll take the 25,000. Damn, that's fucked up.

He just took her fucking kids. God, damn, man. That's ruthless. That is ruthless. And she, she wires the money. Like a week later, she wires the money. Donovan said, he goes, I found out about that at my sentencing.

That's the first time I ever heard that. Damn. Of course, the money just right to blame. He's not trading it. So what happens is they end up, they end up, there's a guy named Chris Roman Daddy. He comes in. Yeah, who is he? So Chris Roman Daddy is, he owned, I think he owned the building that they opened one of their offices in.

And he comes in and he's an investor and he owns a bunch of real estate. He comes in and he meets Donovan. Donovan talks to him. Then Donovan arranges a meeting with him and he and Damien and Blaine. And they all talk and have a talk. And he's dazzled and he puts a million dollars in. And he works out a deal where he gets 2% of any money that he brings in from friends. So Roman Deddy goes out and he starts raising millions of dollars.

So Donovan's raising good money. He's raising some money. Roman Dedy really breaks in the money. So, Romadetti convinces them to buy a plane. So they end up buying like a capital plane for capital blue. Yeah, I think it was a $2 million citation or something.

Right. So they can fly people around. All Donovan's really doing is bringing people out on fishing trips. Matter of fact, Blaine actually tells the IRS investigators that he thought of Donovan more as an employee than as a partner. he had told tells him he had no experience in 4x uh

damien had very little experience and blaine's a hit or miss guy he's not he's not brilliant he's not making a ton of money the thing and the thing is here's what i always asked donovan i was like why would they hire why would they bring you in you don't know anything about 4x you sell dirt for a living and he's like right

and he said well that's the whole thing i think it was because i did didn't know anything. Right. So you're going to blindly believe anything I tell you. Yeah. Because I'm an expert. So if I tell you this is how it works, this is what you go tell them when they ask that. He goes, oh, okay. Yeah. Hey, rich guys and hey, we're going to go fishing and this and this. Yeah, I'm making great money. You see my Ferrari or my Lamborghini. We got a fucking plane. We're making a ton of fucking money. Yeah. Well, how much money can I lose? Ah, like 20. The most you could lose is 20%. You can lose everything you have. It's interesting that meanwhile, Damien, or not Damien, Blaine. No. Donovan. Donovan. Donovan is still rich. His company is still making tons of fucking money during this whole time. Right.

So he's not, I mean, that guy's more than comfortable. Right. He doesn't, he's thinking this is the next Google. These guys are making 100% a year, 90% a year. What business do you do that? I give you $100,000 and a year later, I got $200,000. And how is he, you later, I got $400? Is Blaine compensating him in any way? Well, he's, yeah, he is getting a salary. He is getting a salary.

He's about $12,000 to $15,000 a month. He's all still owns the dirt business. Yeah. He's like, all I really do is bring people on fishing trips and, um, and set up seminars. So he's just investing his time in this, in this blue capital company because he thinks it's going to be a huge hit. He's going to be huge. Plus he's making money.

And he's still investing money. He's investing his own money. Yeah. And getting family. and friends and investors and everybody to invest money in this whole thing. So the gap, it turns out,

and that's where I actually got the name because there's multiple documents where they talk about the gap. The gap is the difference between what they actually have in the bank. Liquid money. Right.

Liquid money and what the investors think they have. So the investors think they have $25 million they're trading. Well, they've already pissed through a couple million dollars. They've only got 19 million left or 20 million left out of the 25. So the gap is the difference between what they actually have and what everybody, what they're supposed to have. Right. And that's the gap.

Well, what happens is they are trading. And they're trading with a company, one of the trades trading companies they're dealing with is a company called a PFG, Peregrim Financial group. And that's owned by a guy named Russell Wussendorf. and the company's worth like a billion dollars at this time. So they're trading through PFG. Well, they give PFG the money. What happens is in 2008,

there's just this catastrophic correction in the market, right? Because it's coming up on the financial crisis. So the market's just up and down. There's this huge correction. And it almost wipes them out. So PFG does a margin call. Hey, we want all our money. You guys are doing it on margin.

Well, guess what? It's gone. We need the money. So immediately Donovan goes and wires them a million dollars. So he's still dumping money in. He's no clue. So they lose a huge chunk. I don't know if it's 20, 30 percent.

I forget what the percentage is. They lose just a ton of money. Oh, man. So they lose a ton of money and Donovan has no clue. Well, then there's another correct. and basically the company is just wiped out. Whatever. So at this point, they're not wiped out.

They still have somebody, but they're pretty well, pretty beat up. So sorry, explain to me, explain this like for dummies. PFG, they're spending, they have, let's say they had 19 million in liquid cash in the bank. And PFG is in control of that 19 million because they're the company that's trading it. They're trading through them. Like they're trading through PFG. For instance, if you come to me and I'm a mortgage broker, I can't just lend you the money. You know, I'm going through a bank or to a lender.

Through the broker. Right. They're the ones who are actually in charge of the actual funds coming out. So PFG is the broker. It's like a bank. It's like a bank. No, it's like a bank. Oh, PFG is the bank.

Capital Blue is like a management company. They're managing it. but the actual company that's buying and selling all of it is PFG. Okay. So PFG to the money, they say, look, you guys told us to do this. We did it. You just lost your money. Fuck.

Right. So they're like, they don't tell Donovan though. Donovan still has no clue. He thinks everything's cool. We're okay. They don't tell him that the positions are closed and the money's gone. They say that the million dollars helped keep the positions open and they're going to leave them open until the market corrects and then they'll sell and they're fine. No big deal.

Got it. No big deal. Got it. We just bought ourselves some time. No problem. He goes, okay, cool. He's got no problem. He's still put money in. We're good. I'm going to meet these investors next week. We're good. Meanwhile, Blaine knows it's... Blaine knows it's over. Damien... Now, at this point, Blaine knows it's over. And Blaine starts coming up with a strategy to start removing the money. How do I remove... So I'm going to start removing all this as much money as I can so that I can haul ass. And when I haul ass, I leave... leave these two holding the bag. So what he does is

he and Damien end up going to Switzerland. Well, they go to Slovakia. They end up driving into Switzerland. And they go to Julius Bears Bank, which is a bank that's

you know, it's not like a fucking Bank of America. Yeah. So they have banks all over the world. None in the United States, though. So what happens is they go there and they meet with a guy. And keep on, I'm getting all this from Blaine. This is all from his memorandum of interviews that he gave. He said, oh yeah, we met with this guy at Julius Bears.

We met with them all day. They're the offshore kings. And they told us how to open up offshore accounts. And we spent the whole day with them. And Damien opened up an account. And basically they opened up accounts. He then turned around and he opened up accounts with several. several other banks.

And he ends up working out a deal with Wuzendorf where he sends him money and then Wusendorf wires parts of the money. He ends up selling what's called puts. So he ends up buying or selling off positions and he has the money wired offshore to his own personal bank accounts. And the only reason I know that is because when we ordered the documents, one of the documents I got back was Blaine had. had opened up several offshore accounts in the names of different corporations.

One of his corporations was called Nakano Capital Advisors. So he also opened up a bank account with the Bank of China. And I have accounts here, or I have withdrawals that were sent to him, $75,000, $50,000, $9,000, $5,600, $3,000, $4,000, $51,000, $10,000, $1,10,000, $110, $1,10,000, $1,10,000. thousand, $4,500, I mean $71,000. The total is $4,900,000 that was sent to different bank accounts. One of them being the Bank of China. So he's got Julius Bears and the Bank of China. The only reason I want to mention that is because it becomes relevant.

So what ends up happening is at some point, Damien realizes things are going wrong. He knows money's being wired that Blaine's siphoning off money. He calls Donovan and tells Donovan, listen, I think Blaine's stealing from us. So he then goes, tells Donovan, Donovan goes, and they go and they confront Blaine, and Blaine says, you know, Blaine's drunk at the time. And he's like, what? He's like, yeah, he's like, look, you're fired. We know you're stealing money. Why do they, why do they suspicion?

Because Damien tells, he shows. Donovan proof that $15,000 was wired to Blaine's account that was supposed to be wired to their account. And he said, look, and he shows them the documents. Look, I've got the document. Here's the thing.

Look, he was wired directly to his account. And isn't as soon as Damien showed Donovan proof of this, they found Donovan instantly got a moving truck, went to the office, and then he got an employee to be. Bain out of the office for like lunch or something, right? Yeah, yeah. Yeah, for like drinks. And so when Blaine comes back, he's drunk, he's been drinking.

Yeah. He's trying to keep him there. And he's like, what are you doing? And meanwhile, Donovan's cleaned out the office. Cleaned it out. Closed, locking up the doors. You're done. And he's like, what are you doing?

And he's like, you know, look, you're stealing from us. And Blaine says, that fuck, that's it. I'm on, I'm going, I'm going to Australia. But Damien's part of stealing it too, right? Yeah, but Damien feels like all the trades are being done from, from, from, Blaine and he knows the whole company's going under and he knows Blaine's siphoning off money. Doesn't know how much, but he does know it. It's happening. So what do I do? What do I need to step back with you who you're innocent and it's us against him.

He's the con man. Damien knows he about the other Ponzi scheme he ran. Damien's clean. So you and I are clean. We're together. This guy's a fucking career criminal. He's already got one Ponzi scheme. He then opened a. another Ponzi scheme and he got you and I Donovan. No he didn't he got Donovan. Yeah. You joined the fucking... The Damian brought Donovan in right? And you joined the Ponzi

scheme. When you found out your 50 grand was gone, you joined up with him to try and get your 50 grand back. And you roped in Donovan and all of his fucking family and Roman Deddy to get a bunch more people. These guys have got $17 million. Some of the

documents say it's $18 million, some say $17. I got some that's 20. But I always go with 17 only because it's a more conservative number. Yeah. Which is ridiculous. Very conservative. But ultimately that's what Donovan was held responsible for, including his own $2 million. So you're going to say, I lost $17 million, $2 million of its mind.

Yeah. And we're going to sentence you on it. Fuck you. Restitution. That's it. You got to pay back your own money. Damn. So.

I didn't blame. That's fucked up. showed up half in the bag to the office. He's like, where, where's my file cabinet? Yeah, the file cabinet, which is where a lot of the, some of the documents came from. Because at the time, he was already involved in some legal shit, right? Oh, yeah, he was trying to pay, he was paying back his original victims. He was, his first, his original Ponzi scheme, victims, he's paying them back because

eventually he got indicted. I mean, not indicted. Eventually, the U.S. attorney, eventually U.S. attorney, a guy by the name of Hanberg. in Orlando, contacts Blaine. Blaine gets a lawyer, brings them in and says, listen,

you've got these investors, you owe them like half a million, a million dollars, whatever it is. You have to, you know, I'm going to indict you. It's called pretrial intervention.

I'm going to give you an opportunity to make good. If you can pay them back and fix it, I won't indict you. Blaine convinces Hanberg. I can pay them, back, but you have to let me keep working in the same industry that allowed me to fleece

them to begin with. Let me set up another Ponzi scheme so I could pay them back. Wow. I got you. And he convinced the U.S. attorney. That's how, I mean, that's a testament to how slick he is. Fuck, dude. So Hanberg says, okay, I'll let you go.

Let me tell you, Hamburg's pretty slick. Hamburg, do you know the pulse shooting? Remember the pulse shooting? The guy goes in the nightclub in Orlando. Kills all the gay, all the homosexuals and that, right? So he kills him all, right? Remember how they ended up arresting his, the, the pulse shooter's wife and she goes to trial? Hmm.

I don't remember the deal. The pulse shooter's dead. Okay. So who do we, well, he's dead. Fuck, we need to put somebody on trial. Let's go ahead and let's grab his wife. So they indict her. She goes to trial.

They're saying she knows about it or something. They're saying she knows about it. She, no way she couldn't have known. She had to know. She was in the car when he drove by the place. was staking it out. She's this. And she's saying, I don't fucking know nothing.

You're crazy. So they put her on trial. He loses. So Hamburg's like, he's just off the chain. You're arresting people that have nothing to fucking do with nothing and putting them on trial. And you lose. Wow.

He lost across the board. He's, yeah. So anyway, so what happens is he comes in and Blaine ends up starting another Ponzi scheme, steals the money, pays some of those victims back. And then this happens, and then he takes off to Australia.

This is right after... Right, the whole thing called on. Right after Donovan came in and cleared out the office because they found out he stole $150,000. Right. So, 115, I think. He's on the next flight to Australia. Australia. Jump on the plane to Australia, goes straight to Australia.

He stays there a week. So he goes... What, because they're calling the cops and blowing the whole scene up or what? Yeah, Donovan's going to call the U.S. Attorney. He's calling the fucking U.S. Attorney calling the feds. Fuck it, nerds. I'm out. He's got, he's done. He jumps on a plane and fucking goes straight to

Australia. The thing is he goes to Australia. He goes to Australia. Then he goes to, I think it's Singapore. Oh, the Philippines. Yeah, yeah. He flies into the Philippines. He goes to Australia or stays there for like a week or 10 day, whatever. Then he goes to the Philippines, and from the Philippines, he goes to Hong Kong. just so happens that Julius Baers Bank, in the financial, or the banking district,

a financial district of Hong Kong, there's a Julius Baers Bank and the Bank of China. So he goes there, he's there for like a couple of days, a few days, goes there, hangs out, and then flies back to Australia. So if you're in Australia, why would you go straight to where there's two of the major banks that you've been sending money to? Get money.

He's pulling money out. He's pulling the money out. Either that, resecuring the money, shifting it to a different account, doing something. Now, here's the other thing, which you've got to realize, too, is this. If you're an American citizen, and I open up a bank account

with Julius Baer's bank, don't they have to tell the U.S. government that I have a bank account there? That's a good question. They do. Technically, they do. They don't have to tell you how much money is there, but we will tell you,

One of your citizens has a bank here. Okay. So they're supposed to report that. Right. Right. Unless your wife happens to be Filipino and she's not a U.S. citizen and she can open it up the bank account for you. Now, his wife has a propensity for fraud because she's been indicted for fraud.

Yeah. She's actually used her mother's information to commit fraud in the United States. Got a loan for $850,000 that they couldn't pay. So the point is is that the wife's So the idea that he could open up a bunch of bank accounts That he has control over Using a non-citizen Is very doable

There's no reason for him to go to Hong Kong I mean as a young guy I could see wanting to go to Hong Kong for a few days But and actually remember I told you I met a couple of guys In Coleman that knew Blaine That had been locked up with Blaine Yeah One of the things I say in the story

It's funny because I'm like, look, I think this is why he went here because of the banks. It's the only thing that makes sense. But both the guys told me a story. They said he went there. They said he had business there. Never really said what it was. But they did say that he ended up, he told both of them that he ended up banging a couple of strippers or call girls or something. He was all night, like three, it gets like three fucking chicks, brings them back to his place.

He's like a really nice hotel. and he's banging him all night long, so bad that he almost misses his flight in the morning. Like he passes out, wakes up late, fucking races there, almost misses the flight. They both told me the same thing. Those are the same two guys that when I said, what's he like?

And they both went, you know, he's a lot like you. And I was like, that's fuck, bro. And they were like, no, I mean, he's likable. He's funny. He's nice. You trust him, though. And they looked at him. You know, you would give him your so.

Yeah, you'd give him a soch. Just give him the Soche. So anyway, so yeah, that's what happens with that. What are we doing here? Okay, so. Didn't you say that at one point, Donovan or Damien called him and one of the hookers answered the phone? He's like, oh, was that your wife? Oh, yeah, that was when he was in, that's when he's in Switzerland.

Oh, okay. Donovan called and this, a hooker answers the phone. And he goes, is that Melanie? Because that's his wife's name? Is that Melanie? He's like, fuck, no, it's just some hooker. bro, what's up? He's like,

and Donovan, I remember Donovan said, I knew right then something was up because Donovan said, my dad told me one time that a man that will cheat on his wife will have no problem at all fucking you over. Because if you'll cheat on the woman you love,

you got no problem fucking over some guy that meets nothing. Business partner. Donovan said to me, he goes, I just didn't think I would be that guy. Yeah. You know?

So, because he liked Blaine. Hate to see it. You know? He's like, he was super likable. You just trusted him. Yeah.

So what ends up happening is Blaine ends up what? Nothing. I'm just laughing about how it relates to you, how it's just like how it rounded him in view. It's so funny because of the you, like, you want to like you. I want to trust you. You can be fucking me so hard right now and I don't even know about it. I feel bad about that, that everybody has a, that I'm a nice guy. I mean, I'm genuinely.

I'm trustworthy. Yeah. So. Just not with my paycheck. so listen I'm I'm good for all that money I'm working on it right now so the point is is that he's now back in Australia he's probably secured his funds he's good

well the government come or Donovan goes to the US attorney and says this whole thing's a fraud it's a Ponzi scheme this I think that Blaine took off with a bunch of money. Now, Donovan doesn't know all of this yet, but he does know that some money has been diverted. He doesn't know to what extent. Right. He also thinks that a portion of the money, Blaine's saying, Blaine and Damien are saying all the money was lost in PFG.

Donovan's looking at the documents and saying, I don't think so. We didn't have all the money in PFG. There's still several million dollars left. Now, of course, everything's been closed up. The government comes in and shuts everything off. Donovan doesn't have access to it. So he goes to Hanberg and he explains

Look, this guy Blaine, blah blah He's like, look, I know all about Blaine He's like, what do he means? And he explains about the first Ponzi scheme. It's like, well, if you fucking knew about him Then what'd you let him keep doing it for? Yeah. Why'd you let him?

Hamburg is the U.S. attorney. U.S. attorney in Orlando. So Hanberg gets upset with Donovan and tells him and his lawyer to get out. We're done. So then Donovan the CFTC comes in, which is a governing body,

they come in and they sue for the trades and the loss of the money and the mishandling of all the funds. And they sue Donovan and they sue Damien. They sue Capital Blue. They sue Blaine. Of course, Blaine's in Australia. Yeah. So they go to the trial.

Donovan never testifies. Damien testifies. During that testimony, Donovan finds out that his initial, This is when he finds out that basically his initial investment was never traded. It's just spent here, spent here. So he's like, okay, the first the 50, then the other 50, then the 100, then the 100, then the this, then that, then my parents, money. All of it's going all over the place because they have the document. So this is the first time he realizes this is all bullshit and Damien's definitely on it.

But he doesn't, he said, but I don't really say anything at that point. I still keep saying, yeah, yeah, it's Blaine's fault. It's blame's fault. So he ends up going to Damien one day and they're going over all the stuff because they think they're going to be indicted. So they're looking over all the documents and Donovan says, look, you know, we need to get all this stuff correct. And Damien goes, what if we find some documents

that show that Blaine is solely responsible? And he goes... Some emails. Yeah, some emails. And he goes, do you have those? Why didn't you give them to the, to the lawyers? And he says, no, I haven't found them yet.

He said, but what if we find them? Fine, and he does air quotes. And he goes, and he goes, what are you talking about? He's like, what do you mean fine? You mean like, make? He's like, yeah, what if we make it? He goes, oh, no, no, no, no. He doesn't want anything to do with that.

He gets up and leaves. He calls his lawyer and he says, look, Damien's talking about faking emails. You got to call the feds. So he calls Hamburg. They talk. They end up hooking up with, I think it's a, might be a secret service agent. They're going to wire him up. Well, something happens and they decide not to.

Like they're like, we're not going to wire you up and have you get, get information on Damien. So instead, Donovan takes it upon himself and he, I think he uses his cell phone. And he wires himself up and he goes back a couple days later and he says, hey, and he starts talking to him about, remember that time, the last time I was here and you said, you talked about finding some emails. And he's like, yeah, yeah, yeah, that was stupid. That was stupid. He's like, well, what were you talking about? So he gets him to basically start talking about, well, I'm saying like if we like maybe made some emails. He's like, but I'm not going to do that. I'm going to do that.

He's like, he starts talking to him about possibly taking a plea and helping the government. He's like, okay, well, how can I help them? I don't know anything. So I can't help them with a with the case against Blaine because I don't know what Blaine was doing. So what am I going to say? And so Damien's like, yeah, but, you know, if you just help them, he's like, what am I going to say? Like, make something up. He's like, yeah, if you say, it doesn't have to be true.

Keep on, I've got all the fucking, all the transcripts. Donovan had all this transcribed. So it talked, and this is Damien talking about lying for the benefit of the government. He says it on there. All we've got to do is give them information or tell them what they want to hear to help them with their. And we can get our reduced sentence and we barely have to do any time, that kind of thing. Donovan goes, I'm not going to do anything like that. I didn't do anything wrong.

So what ends up happening is eventually Damien takes a plea and tells Donovan, sends him this email right here which says, Can't talk anymore. You've been recording our conversations. That's a copy of the screenshot. How do you find out? That's the whole thing. Hamburg told him, had to tell him. They're using text message screenshots.

Yeah, well, this is the screenshot that when he sent him, I can't talk to you anymore. Right. So Damien sent him this text saying, hey, I can't talk to you, the only way to know that, Donovan said the only way for him to know that is the U.S. government. Now, a couple days after this, he takes a plea. Damien. Damien takes a plea. So the government told him, this guy's recording you.

the government had to. They're the only ones that knew because Donovan's taking the recordings, telling his lawyer, his lawyer's then sending him to the Secret Service and the U.S. attorney, the U.S. attorney then tells him, stop talking to this guy, he's recording you. Holy shit. He's recording you saying you're going to manufacture emails.

Yeah. And that you're going to lie for us to help convict these guys. Damn. So that's the email they sent him. I mean, I got fucking tons of this shit. Oh, yeah. So Donovan's tried to explain the whole thing, right?

Hamburg doesn't believe him. I don't believe you. He thinks Donovan's in on it. So Donovan says, this guy will not believe me. And he's using this guy who's talking about manufacturing evidence to try and convict me. He may indict me. I'm worried. I know what will convince him.

I'm going to go to an FBI, an FBI expert that does polygraphs. And I'm going to have him polygraph me. So Donovan has himself polygraphed about whether he was a part of that fucking Ponzi scheme or not. And this is an FBI, what do they call them? Polyographers or some fucking thing, I'm sure. Yeah, polygrapher. Is it really? That sounds good.

Let's go with that. Let's do it. Okay. And it says, I evaluated this examination as not indicative of deception. There's not, he's not, he didn't deceive anybody. He's not lying. Right. This is your own, this is the same, same.

this is the same guy that the FBI uses. So Hamburg and Dites Donovan. And then Blaine at some point flies... So this is funny. This isn't funny. See, I have a bad sense of humor. It's not funny. Kind of is.

It's probably funny. It's that Donovan said he's like on a fucking excavator or something, right? And he gets a phone call from a guy who's a programmer in Canada. Turns out Blaine Flay. flew to Canada. And after he flew to Canada, he started another company, another Ponzi scheme. He starts another Ponzi scheme. And he fucking needs money?

I don't think so. I think it's just what he did. Listen, when I had a few million dollars and I was on the run and I've got, let's go to Vegas and find some homeless people. And let's just keep doing it. It's good. It's what I do. I have to do something.

I'm good at it. I enjoy it. There's a rush in it, I'm sure. Yeah. It's fun. It's not that difficult once you start doing it. Right. You keep up in the ante.

It's good. You've got to get it while you can. Yeah, it's good. So I'm going to keep doing it. Yeah. So what does Blaine do, even if he's got a few million dollars? Fuck it. I'm going to go open another place and get some more money.

Right. Why wouldn't I? So you got to do something. Yeah. So he opens up AGM capital, goes to Canada, and he gets this guy. How much does he get this guy for? Oh, is it over half a million bucks? Yeah.

So the guy ends up getting a month. mortgage on his house, pulling out over half a million dollars and gives it to blame. Wow. And so the guy called Donovan on the phone, told him what happened, asked him, do you know who this guy is? I found this website. I found your name. I found this.

And Donovan's like, yeah, the guy fucking ripped me off too. He ripped a bunch of people off. He's probably going to get me fucking indicted. And so Donovan's like, so there's probably more people in that Ponzi scheme. I met, I got one guy tracked me down. How many other guys are out there in Canada? So that's a third Ponzi. scheme. So

Blaine is flying all over the country, right? One of the country, the world. He's a big shot. He happens to come fly into Houston. Right? He flies into Houston. He's popping in, going to leave. Just going to visit the wife.

Hey, babe. I'm going to come do a pop-in. See how you're doing? I've been in Australia for the past. The Secret Service almost caught him, like, a month earlier, they caught him on, they almost caught him on June 1st. He was supposed to fly in. They found out about it. And for some reason, he just stopped. He didn't show up. Change his plans. Well, then he flies in like a month. It's a month later

on July 18th, 2010, he flies in and when he's going through customs, his passport hits an alert, and they come and they grab him, they arrest him, and they bring him to U.S. Marshall's holdover. And they won't give him bond. I don't know why. So, oh, yeah, I forgot about the part where he was in Perth, Australia, and they, the process service come and he thinks he's being arrested.

That's hilarious because I have the whole thing. He's like tanning by the pool or something. He's tanning. He's getting on the elevator. They come to him. He's drinking a margarita. They ask what his name is, and he's like, David. They're like, okay, well, they're looking at him like, well, the pitcher, you look like Blaine Davis.

So he keeps lying and lying. lying eventually he pushes the button for his dad his dad's voice is like yeah you know what's up he's like dad they got me so it ends up he's just being served papers but then eventually he flies into uh houston and he gets grabbed by the secret service so now he's arrested so um so that's that so and where he's arrested where is damien and donovan at this point yeah they've been indicted and the government has a star witness, which was the bookkeeper at Capitol Blue. Oh, yeah.

Beth, Courtney. So Beth says that she was being given numbers by Blaine, and Damien was asking her to change the numbers. And she says Donovan knew about it. It's never really, Donovan says it's just her word saying that she says that. I did not know about it. She says, no, no, that he was a part of a phone call one time where she spoke to him.

He was in the room one time. He knew about it. Like never really said that she had a conversation, but he was definitely there. Donovan said, if I was in the room at all and they were talking about the gap, I wouldn't have necessarily known what they were talking about because he thought the gap was an industry term, which he thought the gap was the difference between what the liquidation calls. or price was and what the actual what the actual

contracts or something were. He said, he thought it was an industry term. He goes, I didn't really know enough about it. Yeah. So he said, I kind of stayed out of it. He's like, so I don't he says, I don't know what she's talking about. She says it's, clearly he knew. So, you know. It's not good for Donovan. It's not good for Donovan. Because she's basically without her.

How did she say that? I don't know. I do know that she is related to Chris Roman Deddy. Chris Roman Daddy. The attorney? No, no. The guy that dumped a million of his own money in and got a bunch of buddies to dump it.

The guy that raised the bulk of the $17 million that's now missing. Roman Daddy hates Donovan's guts. He's furious. He still loves Blaine. I think Blaine's amazing. Why? He doesn't have a problem with Blaine and Damien can't stand Donovan. I'm not sure.

Because Donovan brought him in. I think Donovan brought him in. I think Donovan probably, he probably, thinks Donovan knows about it? I think he thinks Donovan probably didn't know anything. At this point, I don't think he, Roman Deddy, I don't know what Romandetti thinks. But I know he's related to Beth. So here's the other thing.

What's interesting. So we've got a little Ponzi scheme, which is, I probably lost half the viewers so far. You got a little Ponzi scheme. I'm going to wrap it up here, here. We're on page. This is a short podcast. Yeah, we're like halfway. We're only 40 minutes in.

We don't have to do two out. No, come on. I got to get it. I barely ate today. I'm kind of hungry. We'll take you out to eat after this. What did I have? I had a small omelet.

I had a 520 calorie omelet. You count your calories? It says it right. Yeah. Really? Bro, I'm... Look at him. Why, you count calories?

I'm 50. I look, I'm fucking amazing. Are you keto? Are you keto? I don't know what keto is, bro. I don't know what all that is. All right. Danny's keto.

Okay, keep going. Um, okay, so, I still want to say some stuff right now. Anyway, no, the point is, listen. Do you remember PFG? Yes. They were trading under PFG and PFG. And who is the guy who was the CEO of PFG again? Wussendorf.

Wussendorf. Russell Wusendorf. Right. Okay. So we've got all our money, a bunch of money, not all of them. We got a bunch of money in Pfg and they do a margin call and it wipes us out. Yeah. Well, PFG was a Ponzi scheme.

What? It was a $3 or $400 million Ponzi scheme is one of the largest Ponsi schemes. It was the largest 4X Ponzi scheme. Ever. Gotta be, yeah, for that much money. Wow. So they didn't trade a fucking thing. Russell Woosendorf didn't trade a thing.

Saw the millions. Did they know this? No. No. Blaine is doing side deals with them. The truth is he's thinking he's convincing like a legitimate guy to help fucking siphon money and do that. No, he's not.

This guy's a crook. So it is like the Russian dolls. So he got played too. It is the Russian dolls. He's playing everybody else. He does like that comparison? I love that comparison. It's the little Ponzi scheme and the bigger Ponzi scheme and then the

huge Ponzi scheme on top of it. So this is three Ponzi schemes, one on top of the other. Just living in the bowels of the bigger Ponzi exam. Nice. Bows, right? In prison, no thesaurus came up with bals. Okay, so, um, Sanch, I did have a Thasaurus. That's, that's, that's, that's completely untrue. I did have a Theserner. But I didn't have spell check or anything. So listen, okay, so Wuzendorf, here's the problem with Wuzendorf. Wuzendorf has been running a pot. How do you run like a fucking half a billion dollar Ponzi scheme for, Is it 20 years he's been doing it? He's a little bit sharper than Blaine.

A little sharper than Blaine. Here's how he does it. He's just doing the same thing. Yeah, but on a massive scale. Yeah. Except he's ripping off businesses. Other businesses. He's ripping off Ponzi schemes, not just, you know, friends with money.

Yeah, he's ripping off people like, like Capital Blue. Right. He's like a made-off. Right. So, exactly. So what happens is he's... And where, I'm sorry, but where was PFG located? Where was they, where were they based out of?

Chicago. Chicago. Right. I feel like so many Ponzi schemes were in Florida. Florida is filled with a lot of criminals. It really is. A lot. I've talked about a ton of like, like the financial criminals.

Yeah. Remember the Vitality story, Atonement? Yeah. Where he's raising all the money. He said, listen, he goes, you go to Palm Beach area and he said, man, he said, it's fucking in and date. He said, everybody you meet the fucking is a scam artist. So many stories I've heard.

Ponzi schemes getting busted during the financial crisis in 2008. How long did they run? Florida. Right. But they're running forever. So you're running five years. You're like, yeah, everything is great. And then the economy takes a huge correction.

And you go, and it just destroys your whole fucking thing. You could have go forever. How long? Yeah, right? What if they're, like. Look, Madoff. Had Madoff could have gone forever. He'd gone for like fucking 15 or 20 years.

I know guys that have gone fucking 10, 15 years. on Ponzi schemes. And that one correction, they don't fucking account for that. And then people, everybody says, oh, I'm scared, give me my money back.

And they're like, oh, fuck. About that money. My bad. So, all right, so Wusendorf. You're so likable.

Oops. I feel bad. So listen, here's what Wusendorf does. All the money he's trading is through U.S. bank. So all his accounts are U.S. bank accounts.

They're handling everything, which is nothing, by the way. He's not trading anything. He's just stealing the money. He's blown $200 million here. He's lost just tons of money. Over $200 million was gone, including capital blue money, $6 million. I mean, this guy, nearly half a billion dollars had flowed through BFG.

Gone. So here's the problem. He's going to keep going. He could just keep going and going. The problem is, is that the CFTC changed, changes their reporting status. He had reported to PFG all the paperwork that comes into the bank that has to be filled out by bank officials was all going to a P.O. box he had opened in the name of U.S. Bank.

So the CFTC is mailing these reports to his, to his PO box. He's filling them out and sending them back. But now they're going to do it electronically, directly to the bank. so they're not going to be fooled by the P.O. box. So he realizes it's over. In like a couple of days, they're going to report and they're going to know that I'm supposed to have $300 million in the bank,

and I've actually only got $6 million. It's over. I'm done. So he does what any good Ponzi scheme person should do. He gets a car and he gets a hose. He gets a fuck out of Dodge. And he tries to commit suicide. No, no, should do. Should do.

He gets the hose and he puts it in and he does the thing and he puts it in the pipe and he duct tapes it up and he cuts a little slit. You know what the only part that bothers me about his suicide attempt is that he's driving a, um, he's driving like a Chevy Cavalier or something. I mean, nobody deserves to die in a Chevy Cavalier. I mean, you've got $6 million. You couldn't go buy a fucking Mercedes. A Bentley? Maybe it had some sort of sentimental value to him. It's just ridiculous.

Yeah, that's true. Maybe it was. Maybe it was his first car or something. Yeah. I'm still going to get a shit. Hell no. If I'm doing that, it's going to be in something decent. So he takes a handful of pills.

He drinks down some liquor. He writes a letter explaining that he hasn't made any trades. All the money's gone, everything. Leads on the front thing. Starts the car. That's a big shitty way to die. Yeah. He's fucking, he's hardcore, bro.

He's going out. And it would have worked out perfect. I would call that hardcore. Well, he's not taking a gun in his. in his head. I wrote one story about a guy that took a gun and stuck it in his head and pulled the trigger and it didn't kill him.

So then he blew through his fucking eye cabbidies and so now he's blind laying there on the ground. He's to find the gun. Now he's got to find the fucking gun and shoot himself again. He killed himself the second time. Back to Wuzendorf. Wuzendorf would have killed himself except one of his employees really enjoyed his job and he showed up about an hour

early and found his boss in the back parking lot. Getting all gassed up. Yeah, passed out, and he goes, and he opens the door and calls and says, hey, you might want to come get that. Some shit's going along. It's all fucked up. Company's a little fucked up, and I think it may be more fucked up than I think. Dude ties hell.

The owner of the company is at a fucking cavalier. So he killed his buzz. Yep. So he wakes up in the hospital. Yeah. They've got his best nightmare. Oh, no. Wussendorf.

That's a worst case scenario. Why did they give Wosendorf? I think they gave him like... Wokes up in the hospital handcuffed to the bed. Yeah. Yeah, they gave him a chunk of time. And you just snitched yourself out in the letter on top of it? Oh, that sucks.

Oh, fuck, dude. Oh, yeah, so Wustendor's already like 70, by the way. They gave him... Oh, he'd been running a Ponzi scheme for 20 years. Pfg was a 20-year Ponzi scheme. It was $3.76 million. It was... Not too late for you, kids.

1,300 investors. I still have time. He'd blown through $115 million. Oh, shit. What did they end up giving him? Damn it. They gave him like a chunk of time. It wasn't doable for a guy who was like 65 or 70.

Anyway, so he's dying at you. So what else happens? Blaine's in prison. Oh, yeah, the trial. Donovan goes to trial. I'd like to point out that you've been no help at all. What was the fucking guy that did the comment? I'm doing my job.

I'm shutting up. I think. Oh, my God. I read a few comments They went a whole podcast episode About your hair Oh yeah, yeah, yeah Yeah, they do

They want a whole interview on the hair graphs Okay I need one more I need one more hair graph I think I need one I'm starting to lose it You fooled me with that one I can usually tell

If people got fucked up hair implants But yours I couldn't Honestly could not tell I'm starting to get a little I'm not an expert in hair grafts But I mean I listen I need some work done

I need one more I got three surgeries I had one surgery I mean I had two surgeries I needed one more surgery and it would be 100% coverage. So it's still, it's thin. When's the last time you got?

I need one. Oh, it was like six months, six, eight months before I got, before I got grabbed. That motherfucker, that shit held up strong. I don't take, and I don't take them, you're supposed to take medication. So your hair stops falling out. That motherfucker did a damn good job. Yeah. You want to shot them out?

I don't know what it's name. I'll give him my soce for a hair graph. I actually got an argument with the with the surgeon before he did it. Oh my God. About what? Okay, because a male hairline, it goes to a point, right? It recedes into like a corners, a V, right? And I said, listen, I want you to round it at the edge, it's just round it slightly.

And he goes, well, that's not how a hairline is. And I went, yeah, I know, I understand, but I see these guys that have it, And it doesn't look right. He's like, yeah, but that's naturally how it goes. I go, yeah,

I know, but I think, I feel like it looks better if you round it slightly. I go, it's just, we're talking about a little tiny thing. He was like, that's not really how I was supposed to go.

I said, well, I understand how it's not supposed to go. I said, but I'm supposed to be bald right now too. I'm giving you money. I said, right,

I said, so can you do it? And he goes, I mean, if you wanted to not look natural and I went, yeah, I want it to not look natural.

So can you do it? So he's like, well, I don't, so we start big, my girlfriend was there at the time. She's like, well, hey, hey, hey, hey, hey, she's like, this guy's about to fucking, what are you doing? Cut on your head and shit. This guy's got to have a knife. I'm like, did you have to go unconscious for that? No, they give you a volume and you basically fall asleep. Oh, shit.

So you put headphones in. Yeah. They got like three girls who are cutting up the little shit. Oh, it's a whole fucking thing. And so you basically fall, fall asleep and then they just, they do it for like four hours. Where does the hair come from? Cut from the back of your head. Oh.

They take the hair out of there and put it up front? Yeah. They take a swath of hair like, it looks like a popsicle stick. They actually cut you, pull it off. And it keeps growing? Oh, fuck that. And they'll stitch the shit down. One value may not going to do it for me for all that.

Oh, no, I'm numb. You're all numb back there. You can't feel nothing. You're numb. Your face is numb. The nose is numb. Oh, my God. Yeah, it's all fucked it.

Listen, listen, it was painful. It was painful. I mean, you know yeah it's bad not as painful as being bald do you want to go in for a third touch up fuck yeah how much does that shit cost

it was seven grand eat surgery they said plastic surgery that's way out of my budget but it's okay because it was Bank of America's money so it was really some of the best money I spent really money well said the nose job the fucking listen

I mean I'm fucking is it true that plastic surgery is like once you pop you can't stop you just get addicted to keep going back. Oh, I would like tattoos. I'd love to go back. Like tattoos, yeah. If you give me 50 grand right now, 15 or 20 of it's going into plastic series. What are you doing?

What's the first thing you do? Touchups. I mean, fuck. What do you need touchups? This is a, go ahead. Yeah, I want fucking the love handles done. I don't really have them, but they're kind of there. They're kind of not there.

I mean, you need some, you know. This is my opportunity to interject, okay? I want everyone watching this to go to patreon.com slash inside true crime. Matt is doing audio books and all kinds of stuff You can go pay him and support his His livelihood here to write these stories So this guy can go get the fucking ab reduction And get some more hair work done

And what else do you need done? You know, I would probably like to go in again And do like another, what they call a mini facelip Yeah, I feel like it's, I just, yeah, I'm feeling the whole I don't, I'm not, it's not good Danny needs bunyan surgery. Yeah. Bunyan surgery?

I got like, you never seen LeBron James' feet? You know, I actually have a photo of his feet. No. I never see him. I got, I got his feet.

I don't, okay. All right. Patreon.com slash We're way off topic. Yeah, bro, listen, you know what I need.

I need, all these guys are fucking like, you got to do a podcast, you got to do a podcast. You got to do a podcast. Yeah, you need that too. You need that too.

A podcast for 6,000. I got 6,500, maybe, I got 6,500 subscribers. I need like fucking 50,000 subscribers. Yeah. For it to be,

worth it. Otherwise, I'm just busted my ass for nothing. 50,000 let's get Matt will do a podcast. Let's get Matt to 50,000 subscribers. Can we do it? Sounds like a lot, but yeah.

Yeah, that's what's wrong with? That's reasonable. We can do it. Tell a friend. Let's do it. Just tell a friend. Just share it with a friend. Send an email, send a text, whatever you got to do.

We're getting Donovan right now. Listen, if I, listen, you, these Ponzi guys, like, I remember, listen, I remember I was talking to Vitali one time. And I was like, I don't understand you did this in your own fucking name. he's like yeah yeah well you know he's like because when it when it falls apart when this happens it happens he goes you know the problem he's he's when if it if it goes wrong he was I mean he was look nine out of ten of these things go wrong if you invest a bunch of money into this business and it goes under nine out of ten go business he goes so you don't really realize you got taken and I went

yeah but he goes and these are legitimate businesses they don't have much of a chance but you don't know that as an investor he said I don't know that maybe it will work I don't know I go yeah but if you're going to do that why wouldn't you just set the company up set it up so it really looks like it's going to take off. You fabricate the entire thing and then just go in as using a false identity. I said you set up the bank accounts and false identities. You don't put any of the money into the fucking thing and you take the whole five or ten million dollars and you disappear. You don't take a million and you might end up in prison.

You take fucking ten million. And when they come looking, they're looking for somebody else. That's what you do. And he's like, fuck, bro. He said, that's a last fellow. How would you get the bank of a cat? So we started, but don't take my word for it. I'm in here for fucking 26 years.

So, but yeah, a lot of these guys, they get jammed up by doing a little something fucked up. And they're like, yeah, that's okay. It's just a little bit. It won't. Look, there's no difference between a little fucked up and straight fraud. So I'm not taking 100,000. It's got a chance of going good or something, maybe they think. Yeah, they think, I'll get away with it.

Maybe it'll work out or something. Maybe hope's not a strength. So anyway, I probably didn't look good. I think the last time we left off was Blaine got arrested and Donovan and Dom and Donovan and Damien. Damien. Yeah, Donovan is going to trial. He gets indicted. He's going to trial.

Right. Blaine's going to testify. Damien's going to testify. So he's got these two guys are now. Did they say Donovan knows? they're saying Donovan knew Donovan absolutely knew Motherfucker

Keep mind They both Keep in mind They both know That to get my sentence reduced If I help the government And they get a conviction I don't get as much time

If I was going to get 10 years I might get three or four years So they throw him right under the bus Fuck Those motherfuckers And the government is Ready to do this Now at this point

Hanberg has declined to prosecute. He says I'm not going to prosecute him. Prosecute to Donovan? I'm not going to prosecute the Capitol Blue at all. Anybody involved, I'm not going to indict him. Well, I'm going to get to that.

I'm glad you asked that because I actually have a pretty good idea of why. So he says, he says I'm not going to. But what happens is the D.C. comes in. The D.C. attorneys come in and they take over the case. So the U.S. Attorney's Office in the District of Columbia comes in and they take over the case and they decide to prosecute. So that attorney, that U.S.

attorneys, they come in, they indict everybody and they're going to trial. So now Donovan's going to trial. The judge is, oh, did I have to tell you this? This is one of my favorite part. When the whole company gets liquidated, like they come in here, they give

it to a receiver. You know what a receiver is? It's a guy that comes in. He looks through all the documents. He tells you how much the company's worth. Then he breaks it part and he sells the company and he gives the money over to the government. Okay. Whatever money he could scrounge out of it left, he gives it to the government. Exactly.

Because, of course, there's very little money. And in this case, in particular, the guy is, uh, uh, the judge, which is a judge by the name of Antune ends up handing it over to this receiver. And the receiver, the receiver ends up stealing the last three. $3.5 million of capital. The receiver steals the money. What the, sells off everything,

destroys the evidence. So the FBI comes in a few months after the receiver takes over everything, and the FBI comes in, they raid the receiver and they arrest him. He turns out the last... Well, this dude just decides... For the last few years,

he's just going to pick this case to steal the money? Oh, no, no, he's been doing it. For the last five or ten years, he's been stealing. He stole millions and millions. So I forget what they, what, 10 or 20 million, I have the amount is in here. What are the chances of that. He ends up getting 10 years. So one of the things that happened was, one of the things that happened was, something's

fishy about Hamburg too. You know, I'm glad you said that. I can feel it. They're going to like the hamburger thing. There's something fucking weird going on with that guy. So what happens is, what happens is they hand off. So when the receiver gets all the stuff, one of the things he gets is the servers, which had a server, which has all of the hard drives in it, right?

All the information and shit. He gets the hard drives. He destroys them. So they're destroyed. So remember the emails that Damien had talked about fabricating. Yeah. How do you authenticate emails? You check them on the server.

The servers. Yeah. The hard drives. They're gone. They're destroyed. So at this point, the government indicts everybody. And they go to trial. Donovan, of course, says, I'm not pleading guilty.

I haven't done a fucking thing wrong And Damien He says I got recordings and everything else That says that Damien Was talking about fabricating emails So of course I want to authenticate those Where's uh where's uh all the documents The government says

We don't have any documents They were all part of the servers And the servers have been destroyed And so he turns around and says Okay well He gives them his His laptop Here's my laptop

You can try and find them on that. Okay, we'll take your laptop. Then he says, what about Damien's computers? Damien had computers. Damien sold his computers on like eBay. So they can't find those. I think they track them down eventually and then they say like there's nothing on them or they look, no, they were given back to the receiver, tracked them down or something. They're gone. So Donovan goes to trial. So none of those voice recordings are there anymore? No, no, the voice. He has the voice recording, but he can't present the voice recordings. His lawyer says, no, it's illegal for you to record people.

It makes you look bad. No, we don't need it anyway. His lawyer presents a defense that is absolutely ridiculous. His lawyer presents a defense that says all of your investors signed documents that said that they were aware that they could lose all of their investment. Therefore, you're not guilty. because they lost their money. Because they lost their money and they signed a document saying that they knew that was a risk. Listen, it's a legal argument that is meritless and there's nothing that supports it.

There's no case law that helps. It is absurd. And I think it costs Donovan half a million dollars for his defense, something along those lines, for the most fucking horrible defense possible. And the lawyer ever just botched it one day. fucking thing after another he botches. Wow. So do you think that he should have let him present that?

What? The recording. Of course. Of course. Yeah. I'll take the hit. Charge me. What are you going to charge me with? Are you illegally recorded something? Okay, great. So charge me with that. I'll take the six months probation. Right. Probation for that. So I can present Damien talking about fabricating emails.

Right. Right. But it's like, oh, no, it looks bad. Plus the government might not. The, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, judge will probably won't allow it because it's illegal we can't use it whatever so dot but donovan's convinced that he hasn't done anything wrong it's going to be fine we're going to authenticate then he finds out that the servers are gone then they go to he goes to the government they asked for the did you is there anything can you find the computers you can't find them they okay he's okay what about my laptop we never gave us a laptop you don't know about anybody a laptop we don't know

We don't know where any servers are. We don't know shit. We don't know nothing. Everything was gone. The receiver destroyed everything. It must have been with him. So there's just covering and covering and covering. So he ends up going to trial.

And at trial, Damien gets on the stand. And Damien starts saying, yes, the emails prove this. And the emails prove that. And Donovan's saying, I've never seen this email. I've never seen this email. I don't know what this email is. And in the, oh, yeah, yeah, this is the other thing, too. So the new judge is called, the new judge is Carlos Mendoza.

So Carlos Mendoza is a new judge. This is his very first criminal trial. He's a state judge who just become a federal judge. So he sentences Blaine. Blaine goes to trial, by the way. Remember his first Ponzi scheme? Yeah, yeah. Well, they've now indicted him.

On the first one. They indict him in Orlando, or they indict him. Why, he didn't pay the money back? Well, because he committed another crime. Another crime. So your, our deal's off. Yeah, okay. So they indict him.

He goes to trial because he's Blaine. He's cocky. Yeah. I can convince these people I didn't do anything. He gets on the stand and he convinced it. He tells them that, yes, I did get these guys money. I gave it all to this guy, who's a European investor I was working with, gave him the money, and he took off with it.

It's not my fault. Who, who's in? No, no, no, no. Oh, he's just making some guy out. The matter of fact, they mock him. The U.S. attorney mocks him during the deliberations, and they say, you know, they keep calling the guy, the internal national man of mystery.

Blaine can't come up with one bank statement, email, fucking correct name, an address, nothing. It's just some random guy that you handed over, and he tells him like he handed him over. cash. Yeah. Cash money. So guys are giving you checks. You're cashing it. And then they go and they show

his bank accounts. Money is going into your bank account and paying your bills. So how did you? I mean, you really, you're looking at the fucking jury saying this. It's, it's ridiculous. 10,000 went in. I paid $1,100 to my Mercedes. I paid $2,000 for my rent. I paid $1,000 to my fucking bank account. It's almost on.

This is 30 more minutes. So I got this. I got this. So that's it. So all of that money is just gone. And then he says, no, no, I cashed it and gave the guy cash. And he took off with the money. Found guilty, obviously. Yeah. So he's found guilty. So when, when, when Mendoza, before Donovan has tried, when Mendoza, um, sentences Blaine, he says, obviously, you know, this is a, this is a scam, obviously. But, But, and then you did this scam and you went and opened an even bigger scam. And you and your co-defendants or the other owners of Capital Blue committed fraud when you did this. Now think about it. I'm going to trial. You're sentencing one of my co-defendants and you say on this, you say specifically I'm guilty.

Already. Right. And someone else's trial. Right. So I'm saying that Jane, obviously. obviously, you're guilty, you and your co-defendant. He's going to trial. How do you know I'm guilty?

He may be pleading guilty, or lost at trial and pleading. Blaine, of course, pleads guilty. After he loses, he then comes in and pleads guilty. He gets like 12 years total. So, and he agrees to testify. He's been convinced that if you just testify, we'll reduce your sentence. So what ends up happening is, Donovan goes to trial. they even talk about it in here.

As a matter of fact, this is the one right here where they talk about, first of all, they start off the trial saying Donovan was the original investor and he was brought in as an investor and he was duped into investing in the thing and initially he didn't know anything. Then all the emails that show that eventually he did know what was going on, they actually say here, they talk about this piece right here, talks about where they say some of the emails couldn't be authenticated

and you actually have you actually did come up with one computer but you can't figure out why they're not authenticated off that computer they're like yeah we haven't been able to figure that out yet but it's okay we know they're true because Damien said those are the emails he sent

that should have never been allowed to you should have never allowed that you can't tell me that I wrote the emails and I get to authenticate them wow yeah so if I fabricate something I also get to authenticate that it's true. And I've, and it's, we know we've got evidence showing that you, I had intended to fabricate it. Right.

So that's just ridiculous. Okay. So. Do they give him a part of the company so that he takes the fall in the end? Of course. That's part of, that's got to be part of Blaine's. That's the whole thing is, I'm leaving. Yeah, I'm leaving.

You think that he was that clever. I think that, I think that, I think that he. was clever enough to realize when the whole thing was going down. One, they were clever enough to come in and say, we can clip this dude for another fucking $600,000. Yeah, plus. Give him money and he'll take some of the fall. Right.

All of the fucking fall. Right. So plus he'll bring us in more money. And when it all comes down, he's the face of the company. He's the guy driving the Lamborghinis. He's the guy bringing in all the money. Looking flashy. Blaine never talks. They played him like a fiddle.

Blaine doesn't talk to any investors. God damn. Roman Day. and Donovan brought in all the money. And you can say, okay, well, Roman Daddy, Roman Daddy probably didn't know anything, right? Roman Daddy's a good guy. You know, he's probably not a bad guy.

He probably got all of his friends to bring in money. First of all, you're making 2% on all of your buddies. Yeah, right. Your buddy puts a million dollars. Why wouldn't you bring all your friends in? Right, right. And I'm making 2%. You know damn well he don't tell anybody he's making 2%.

Hell no. He doesn't tell anybody. I know that because on the stand. You make a good return. You don't got to tell him that. Right. On the stand, when he testifies, He's saying, I didn't have any deal.

That 2% yeah. Man, we got fucking text messages where his wife is texting Damien saying, you owe us $100,000 for all the people. You're supposed to pay us back this money for the commissions. So, I mean, he's just a line back of shit. Plus, of course, by the way, Roman Daddy was also indicted for running a boiler room and was being investigated while this was going on. so they let him testify

knowing he's running a boiler room and he's being investigated by the FBI and they put him on the stand and let him fucking talk shit about Donovan I didn't know I'm completely broke he stole all my money come on man stop it

okay so remember the so they can't authenticate the emails the servers are gone the government the government knows that the knows the servers are gone, knows that the, what the fuck's the got, the receiver destroyed them all.

So in the end, when they start, his lawyers brought up the fact that these things are gone, right? Several times, when they, during closing arguments they actually say, the U.S. attorney actually comes in and says, listen, there's no proof that he put, he starts off by saying Donovan was the original

the U.S. government comes in eventually and saying, Donovan was the original investor and started as an investor. In the end, when they do their closing arguments, they say he didn't put any money in. There's not any proof that he ever put a diamond to this. They also say, and there's no proof that anybody took any servers or anything. The only person that we believe took the servers and destroyed them is Donovan.

And they say all that in the end. So they've completely shifted even throughout the trial, completely against him. And this is my Roman Daddy thing where Roman Daddy actually gets on the stand. and says that talks about how Donovan, how he's lost all of his money, and Donovan, they completely duped him, and Donovan has just destroyed his life while he's running his boiler room,

a pump and dump scheme, boiler room. And he's making millions, by the way, and ripping people off left and right. So while that's happening, that's what Roman Daddy's doing. So Roman Daddy's word, you know, I guess maybe it's good. Donovan's just surrounded by fucking criminals. I mean, it's just fucking amazing. They're just feeding off him.

This is Roman Dedi's indictment, by the way. Here's some of the money that they were bringing in. 5,000, 5,000, or here's what, 174,000, 40,000, 20,000, 35,000. At that point I just kind of was like, okay, well, clearly there's some money there. And it's a pump and dump scheme. Nice, right? So, Donovan goes to trial. Damien, they put him on the stand.

The jury, for some fucking reason, believes him. No. Yeah. And it's funny because Mendoza at the very end actually says when he's about to find him guilty, he actually says, he was, I mean, for some reason, he goes, the jury believed at least some of what he said. I mean, this is what he's saying about the star witness. That's what the judge said? This guy's a liar. He's been caught multiple times, but apparently the jury believed him.

This is what Mendoza said. Mendoza kind of botched the whole thing. He's let a bunch of information in. He should have been a mistrial. There's a whole bunch of issues that have happened during the trial. It's his first trial. He's not great at it yet. Federal rules are different than state rules.

Whatever. So he finds Donovan guilty. Donovan, by the way, had been told by his lawyer the entire time the most he could get was three or four years. So Donovan got 17 years. God damn. Including. Out of the $17 million, $2 million is his own money. So they sentenced him on $2 million of his own money.

Now, as soon as it's done, the government moves to seize all of Donovan's assets. But remember... The dirt company? The dirt company is technically owned by his family. Right, right. So they go in to get all the cars, the boats. They're trying to get everything, huh? They're like, this is a...

Those fuckers. Right. This is a, so the family puts up a fight and they actually, eventually the government loses and they say, no, you can't take all of our shit because it's our son. It's our son. He's not, he doesn't own everything. He's part of the company. He's part of our family. He's part of this. But it's a family. Right. Right. He don't own it. Right. So they don't end up getting all that. Good. Yeah. Well, he does own one company, but think about it. He is the company. It's like if you own a painting company, it's like me and my five guys. Well, the moment I'm. gone. My five guys are gone. Where's the company? Right. So as that, but as far as they were trying to seize the assets. Yeah. The land, the houses, the cars, the airplanes, everything.

No. So. So Damien got off? No, Damien ends up getting, I forget what, he get three or four years. I mean, I, positive, I have it. So you said the jury, they believed, they believed him, though. They believed them. They believed them. They believe

Damien. I mean, they believe him. But he was, he still got a guilty verdict? Well, yeah, because he pled guilty. Oh, he pled guilty. So when he goes to get sentenced, he gets what's called a 5K1, which is, yeah, you're supposed to get seven or eight years, whatever it is. But because you're supposed to get 10 years, but you cooperate it, so we're going to give you five years instead of 10. Right. Because you cooperate. So Damien ends up getting, he's in front of Carlos Mendoza.

What Donovan got 17 years. What did Blaine get? Oh, wait. Damien got 70 months. So Damien gets 70 months. Here's what's beautiful. You're in love of this. Donovan's been found guilty.

He's sentenced. He's now in prison. Or not in prison. He's in the marshal's, the holdover, which is at the local jail. Damien, when he gets sentenced, they remand him right there. So he thinks he's going to be able to turn himself in. He was told he was going to be able to turn himself in. They say, no, remand.

What does that mean remand? They're taken him right there from the courtroom. Oh, yeah. So they take them right then. Boom. So they stick them in the fucking van to start driving them. Damn. Donovan won 17 years.

Damien, 70 months. They end up going to the same holding facility. Oh, shit. They're in two different pods. Yeah. But here's the thing. Damien on his way to the prison, or to the holding facility. He's bitching and moaning and crudgeon.

crying and there's an inmate that's in there with him called was his name Tiago right Tiago just fucking got a bunch of time so they're all handcuffed up and driving there is they're miserable they're moving and he's pitching and moan and he's like I can't believe they gave me 70 months he's like I testified he's never been in prison so he doesn't know you're not you don't start talking about testifying some IT guy he's an IT nerd so he's like I testified for the government I said all kinds of shit. I said exactly what they told me to say. I lied about Donovan.

I got him a conviction. And they said they were going to let me, they were going to give me a lot less time, and they were going to let me self-surrender. And they fucking gave me 70 months, and then they romantic me. This is bullshit. And Tiago actually says,

it's probably not a good idea that you run around saying that you testified against. No shit. Diago is like a career criminal. He's going to the pen. So he was okay. So he gets dropped off. They don't end up in the same.

sell but they can see each other. Oh shit. Okay, they end up different pods. Yeah, yeah. So you can sometimes, a lot of times you can see into the other pod that's got 50 guys or 75 guys and you can see that guys. And so Donovan's like, motherfucker. So they can see each other. Well, while he's in that pod, he could, Damien also complains to his celly.

I fucking testified against this guy. Oh, my. I lied about him. I did everything the government asking to do. Does Damien know he's over there? He knows he's in the same old facility? They can see each other. They can see each other.

They both know. Right. Okay. So it's not until, so he ends up saying this to like four guys. It's not until later that Donovan finds out. Right? So Donovan ends up, one of the guys ends up getting transferred and moved into like Donovan's unit or they end up in the yard at the same time. And he tells Donovan, this fucking guy is saying that he testified against you.

He's saying he lied. He did this. He said he lied on the stand. And he's like, fuck. now and I know what you're thinking you're thinking Matt come on

how do you know that so here's the affidavit I know you are because you know me I'm fucking listen we know you I'm all about the fucking document so here's the affid

fucking backup here's the affidavit from colapery I don't know how to say anyway Matthew Calipri Matthew Calipri he says

you can take a look yeah this is the one from Ron Grokhoff Ronald Grokhoff same thing I did everything the government wanted me to say

even stuff that wasn't true just to get a conviction on Don they told me I would get to self-report and lots less time you fucking piece of shit so Don Easter affidavit I don't have one from Tiati

We don't have one from Tiago in this font Because Donovan didn't meet Tiago He doesn't know Tiago He never saw him, they were never in the same pod They were never even close to each other So how do you know about him? I'm glad you asked, thank you. So what happens is...

He's more than a 200-pound hat rack When Donovan gets to Gets to the prison And he sees some of these guys He's like, hey, you're so-and-so, He's like, yeah, what happened? This and that and this So Donovan files paperwork with the court saying, I want a new trial. This motherfucker admitted that he lied on the stand.

I got affidavits. So this guy named Frank, I don't know, it's not Amadeo, it's not Frank. It's another Frank. Frank, like, I forget his fucking name. This other guy, Frank, types up the affidavits and gets everybody to sign them. Okay? So the, he, Donovan files the paper. Prisoners?

Yeah, prisoners. Okay. So they type it up, get these three guys that were also locked up with Donovan. Right. and they all sign them. Yes, I met Damien. Yes, this is what he says. Wow.

Why would they do shit like this? Yeah, why would they do that? What? That's a good question. Why would they just type this shit up in there and fuck? Well, because they felt like it was wrong. This guy, first of all, everybody hates a snitch. Yeah, okay.

So they, they, they, and two, they're like, you shouldn't be here. So it's like, look, if I'm locked up. So they're finding out, Donovan's innocent. Yeah, they're like, you're not, you shouldn't be. So Donovan's sitting there like, I didn't fucking do it. He tells, look, I put some money in these motherfuckers stuck it. I went to trial. I fucked up.

I didn't realize that 50% of innocent people still ended up in prison. They saw him as like the victim of this little skinny, nerdy rat. Right, right. So I used to always say, I'm lucky. I'm 100% guilty. Yeah. It would be torment to be in prison and have not done anything and be surrounded. I can't bitch and moan that I'm surrounded by these fucking dirt bags because I'm a dirt bag.

Yeah. Right. But if I was a clean cut guy who'd done nothing wrong, I'd be. And you invested your. I lost all my money, a bunch of my fucking family's money, and I got 17 years. Yeah, all your friends and family. Right. And so people, so inmates, I understand you, they're all scumbags, but you know what?

The fact is, is that they're kind of like, okay, yeah, but I should be here, and he shouldn't, and that's wrong. Yeah. So what do they do? Yeah, I'll sign an affidavit. Of course, Donovan's like, ooh, you sign an affidavit? Sure, okay. So he signs an affidavit. I'll sign it.

Fuck it. Yeah. So the government then looks into it because he filed with the, now he wants a new trial, and they're like, fuck, let's look into this. fucking guy saying this shit. So they send in some secret service and IRS agents and they start checking it out. And they're trying to, they're trying to debunk what he's saying. They're trying to say, look, it's not true. They go to these guys and say, look, did you say this?

Did you say this? And they're like, yeah, that's what I said. That's what the guy said. That's my affidavit. I signed that. That's what he said. Will you testify to that? Absolutely.

And they're like, fuck. So they're trying to figure out how do we make this thing go away. Oh, he was in, he came over in the van with somebody. Let's talk to that guy. So they go, they track Tiago down. He's in the pen. He's in the pen at Coleman. Yeah.

I think the bulk of the guys are going to. What are they expecting him to say? Well, they're thinking at least he's going to, he'll either say nothing or he'll, who knows? We just were looking for somebody that will say what, that say it's bullshit. Yeah, yeah. They're reaching for something. Right. So they go to Tiago.

They said, do you remember this guy? He's like, they're named Damien. No. They show him a picture and he goes, oh, yeah. I remember that guy. I called him little dreads because he had like little, little dready hair. Yeah, yeah, I remember that guy. Do you remember him saying anything?

Yeah, I remember he was saying that he had testified. And I told him he shouldn't be telling people. Yeah, yeah. Especially because he said he lied about his co-defend. He was really pissed off. Right, that's not what they want to hear. Fuck. So the government found the fourth witness.

Yeah. So here's the interview with Tiago. This is the interview. The government comes and then they interview everybody. They all say the same fucking thing. Yeah. The government says the same thing. All these guys say the same thing to the government.

Okay. Remember Damien? Yeah. Okay. So, I'm sorry. Blaine. So Blaine... Oh, yeah, we haven't talked about him in a minute. Blaine's pissed off because Blaine was never allowed to testify. They bring him back and sit him in the back cell, but they never let him testify. They don't let him testify because he's not going to say the same thing that Damien's going to say.

Yeah, it's going to be different. So we can't have him. We only need Damien. Damien will authenticate the emails. Damien will, you know, so we're not going to... To convict Donovan. Huh? To convict Donovan.

Right. He's not going to say the exact same thing. He's still got ready to say it, but they haven't been able to connect to get their story straight. So there's a deviation in the stories. So they don't let him testify. And then they don't reduce his sentence. They told Blaine they would reduce his sentence. So Blaine writes this angry fucking letter talking about how what Damien said was a lie.

And they didn't put him on the stand because he wasn't going to verify the same thing that Damien did. He writes this letter of the U.S. attorney, and Donovan gets a copy of the letter. Okay. So, how did Donovan get a copy of this? Everybody just writes letters. How did Donovan get a copy of this? Everybody. Well, a lot of its Freedom of Information Act.

Matt got the copy. No, no, no, Donovan got that. I get this. This is what I got. Okay. It's funny because people like Donovan, they're so fucking overwhelmed and obsessed with this shit. It's all, I mean, plus, I get it if you, if you have this crazy thing, like this lawsuit, against you, like you're doing, with every fiber of your being.

You are trying to fight it and find every scrap of evidence. But on top of that, they're in prison and have nothing else to do. So I guess it's not really a lot to find something like that. Well, no, I was going to say prior to that, think about it prior to that, you're still trying to live your fucking life. Yeah. So I'm supposed to live my life, pay the lawyers and go through. The lawyers, the least amount of work they do on your case, the better, more money

they make. Yeah. So I'm not busting my ass that much. And his lawyer didn't seem to do that good. No, he didn't do. He didn't do it at all. Okay, so. Okay, so Donovan puts in the motion, remember?

He says, look, I got all these fucking things. Your Honor, I've got this. The government even went and found this. This is the, this, I need a new trial. Look, it's true, it's true. So Donovan puts in all that. So this is the summary where he explains about, about Gruffoff and I don't know these, Easter and all these fucking guys. That's all this.

That's that document. So Mendoza looks at that, reads through it, and denies it immediately. Immediately. Here's his reason why he denies it. He says the entire scheme was thought up by Frank Amadeo. What? See, he knows who Frank Amadeo is. All the judges know who Frank Amadeo is.

He's fucking giving him now. How do they bring this guy into it? And if you don't know who Frank Amadeo is, Frank Amadeo is, Frank Amadeo is the guy who filed both my 2255s and got 12 years off my fucking sentences. It's the only reason that I'm not in prison right now. And my out date was 2030. I'm supposed to be in prison right now. But it's Frank Amadeo that got me out.

He's a genius bipolar. Genius bipolar. No, he wasn't. We didn't do a podcast on him. Yeah, we talked about him. Yeah, we talked about it. Yeah, we did. Yeah.

Absolutely. Yeah. We didn't tell the whole story. No. But his story is on my channel. Inside True Crime. Inside True Crime. is going to take over the world and he is going to be emperor.

So, I'm going to do a podcast with him. He's fucking awesome. So Mendoza says, because the same guy that typed up these documents was named Frank, it's Frank Amadeo. Then he says it's also got, they have to have coordinated. Sorry, am I doing it wrong? Yeah, you're a little too far forward. You're good. I'm good?

Okay. Oh, you were overshooting it. You're good. Okay. So he also says, he turns it down because he says all of the typed up. all of the typed up affidavits, all the formats are the exact same, and all of the fonts are the exact same.

So it all had to be coordinated by Frank Amadeo. Now, let me point out something to you. Too perfect. If Mendoza is listening to this. Which I'm sure he is. We have about 20, no, 20, that's crazy. 15 Swintak

typewriters that are 30 years old that don't have any any they don't have any fucking spell check or any type of in prison you're talking about

in prison they are manual you guys are fucking typewriting so you could type these documents up on five different ones they will all look the same because it's all the same They're all the same wheels. They're all the same font. It's all the same format.

That is actually the reason he denies this. This judge has no clue about that. No clue. He actually says precisely the same font, the same format and font. Right here. Same font. That's Frank Amadeo. As the same stuff that Frank Amadeo uses.

Yeah, they're in the same fucking prison. The whole fucking place has Swintex. They're 30-year-old Swintex. They won't give us computers. God forbid. So, yeah, so that's why he, he, oh, right here. Mr. Amadeo. He talks about Mr. Amadeo here.

He really, they hate Amadeo. That's fucking hilarious. That's funny. Okay, so Donovan's in there. He's completely fucked. Cheez. Shout out to Frank Amadeo. Yeah.

So, Blaine is furious. This is another document from his, from his, talking about, a 5K1. He deserves a 5K1. He deserves a Rule 35, blah, blah, blah, whatever. Okay, so now I'm in with Donovan. I'm writing a story. So when I start writing the story, I start doing evident.

I start looking for evidence. He's got a ton of stuff. And I say to him, okay, I said, yeah, you know, it'd be great if we could get this, we get that. And he's like, yeah, well, I don't know. What do you mean? I see, you know, if we could get the stuff from like from Woosendorf, like from the stuff, because you guys were trading through him, maybe they've got documents. Yeah. We could use. And he's like, well, yeah, I couldn't. get that. And I was like, well, let's do a Freedom of Information Act. I said, to be honest on him,

and you should get a Freedom of Information Act on everything. Right. And he goes, well, why would I do that? I mean, I have all the stuff in my thing. I mean, you know, he's thinking like a normal person. The government gave me everything. So we already said the government has lied about this, a lie about that. He's like, right, but why would they then turn around and give me the same documents that they've lied about? And I go, because they would give you those documents because the left hand doesn't know what the right hand's doing in the federal government. Trust me, I made a ton of fucking money by manipulating public records to make millions because I knew the left hand didn't know what the right hand was doing.

I said, so you order it because the same guy that's in Iowa somewhere or one of them fucking square states up north who's a funky fucking FBI agent or secret service agent working in their Freedom of Information Act department. Trust me, you're in the basement somewhere looking up documents, not why you signed on to be a Secret Service agent. So that guy doesn't know that the U.S. attorney in D.C. lied. Because it's not listed anywhere. He doesn't know him.

So if you ask for those documents that he said you didn't have, you may get him. And he goes, okay, well, how do I do that? I say, look, I got a form letter. So we fill out the form letter. we send it in. He gets back something, first he gets back something that says that they have no documents. Then he goes back and says, well, that's not true.

I know you have documents. You just prosecuted me. They come back and they say, well, I got 54 documents. He says, I know that's not true. Okay, okay, okay. Then they come back and they go, okay, fine, we have 200,000 documents. Jesus.

But it's going to take us three years to compile them and we need $15,000. Well, Donovan still has some money. So Donovan is like, start fucking compiling. And then... There's plenty of dollars. dirt to go around people. So then he ends up getting this letter from the secret service that says, hey, listen,

we have these, we've obtained these external hard drives that went missing. We have them in our vault, our evidence vault. What do you want us to do with them? So Donovan goes, Matt, I got this in the mail. came to Coleman right here, Donovan Davis. He's like, they fucking got the hard drives. No, no, I said, I thought the hard drives were destroyed. So they have them.

The receiver supposedly destroyed them, right. They actually, what happened was, the Secret Service came in and made copies of everything before they gave it to the receiver, which is what they're supposed to do. Sure. They still have the copies. Do you want the copies? Fuck, yeah. And he goes, yeah, I do want them.

I do want them. So Donovan goes, and he says, okay, I do want them. So he calls his wife, Chris. Christy then calls and says, absolutely we want them. So she said she told me on the phone. I talked to her yesterday. And she told me that she called, how many times did she call? Called for, I think, almost two weeks straight and left messages.

I want them. I want them. I want them. Finally, she got a call back from a guy that Donovan's suing right now. She got a phone call back from this guy. And he said he did have the heart. He said, yeah, yeah, I got him. Oh, here's his name.

Agent Roy Dotson. So he's in the evidence department. So Dotson says, yeah, yeah, we've got them, but they've been erased. She's, okay, well, I want them. Yeah. He goes, well, why do you want them? They've been erased. She's okay, well, I still want them.

Because she's got this thing, this data analysis company that's going to fucking go through. They can recover them. Yeah, yeah. She thinks they can be recovered. Yeah, maybe something's there. She goes, I don't care. I want them. Yeah.

She's trying to get her fucking husband out of prison. Yeah. So she goes, I want him. And he goes, oh, well, I can come down today and get him. She goes, oh, no, no, no, no. They're in our vault. It's going to take about a week or two. You got to schedule an appointment.

She says, okay, fine. So she schedules an appointment. She goes and gets a private investigator to go with her, like almost two weeks later. She goes down there. She gets them. They get them. They bring them straight here to data analysis. Data analysis looks through them and says, I've never seen anything scrub this good.

Wow. They go, this thing's past the fucking factory settings. There's nothing on these things. Nothing. They're blank. Can't tell anything was anything written on them. And she's like, fuck. So, but Donovan and I keep getting documents in from the government.

One of the documents we get in tells that when Christy called, let's say, for the sake of argument, on the first, they said they've been wiped. They're blank. We get a document in that says on the fifth. They wiped them. After they got them. Five days after you talked to her, you then erased them. Right. You said they were erased before already.

No, no. They can prove that. Yeah, they got a document that shows when they were erased. We got them out of the fault. We erased them. We then gave them to her. Oh, my. By the way, you're not allowed to erase evidence.

No, no. No. Okay. It's completely against protocol, policy, fucking just in general. All right, so you can't do that. So, one, so Donovan's suing that guy and a few other people. So Donovan's like, fuck, this is bullshit.

I can't believe they did that. It's upsetting. So then he goes, do you know what? You know what? What about my laptop? Where's my laptop? So he then contacts them, or he goes to the judge, he files paperwork with the judge saying they just erase this with the court. They erase this.

I want my laptop. They have my laptop. Because he has documents in showing they have. So then they go and Christy contacts them and they come back and they, oh no, I'm sorry, the government comes back and the government says it's been destroyed. Of course. He destroyed the, let me tell you what happened with my laptops when I got arrested. I got arrested. I was by the Secret Service.

They seized all my equipment. They seized everything. They seized all my hard drive. They seized everything I had. They seized all my laptops, everything. Six years later, two secret service agents drove down from Atlanta. they pulled me out they bring me to a room

and they say hey we're with the secret service and I said okay and they said we have your laptops I said okay and they said do you want them back we have them I said well no I don't want them they go okay well we can I said it's old technology and I'm about to spend another 20 years in this fucking place so yeah I'm good

thanks keep them fuck do I care and she goes okay well we need to destroy them but you have to sign this paper and I went you drove down here? Both of you think she goes, well, there's two of us, we have to be here to witness it, and you have to sign for us to destroy them. Not Donovan.

Donovan. They just wipe this shit. They just wipe this shit clean, and his laptop. Personal laptop, they just destroy it. So Donovan's suing that woman, too. The Secret Service agent did that too. So, remember he wasn't prosecuted out of Orlando. Donovan wasn't prosecuted out of Orlando.

Remember, remember a Hamburg. So why wasn't he prosecuted out of Orlando? Right? That's one of the questions was like, why? It doesn't make sense. It was in Orlando. They had all the evidence.

All the witnesses are there. All the victims are within it, within, why would you have these guys in D.C.? How do they come in? Okay. So I wasn't quite sure of that. And this is what happened basically after the gap. Like after the gap and after I left, these are the kinds of things that this is the part that started. So it's after you told it.

This is after you wrote the story. after I wrote the story after I left There's little things that are happening And Donovan and his wife Are starting to put it together So I've spoken with his wife And she Over the last several days

And last week she sent me a packet And I went over the whole thing Because she's really deep into it Yeah So God that's got to be rough man He's in there for how long he's been in there to date Like six six years

Five six six six six years? So he's got like at least ten left And still be married And be in visiting How often does his wife? Your wife visit him. You know what? Is it five or six years now?

Damn, damn. Well, oh, his wife comes every single, you can, you know, they have a scale. You could only come, like, you have points. So you have to have so many points. So you end up coming, like, every two weeks or whatever. So his wife comes, like, two or three weeks out of the month. And they have to balance how many this and how many points is this. And do we get free points that day?

Listen, they make you jump through hoops like you can't fucking believe. They don't want your family coming. Yeah. I mean, they say, oh, we do everything we can. They do everything they can to not have your family come. And this guy has a beautiful wife, amazing person, just a great person all around. He's got a little baby daughter that gets to, that's basically, I think she's probably like four now, maybe four or five years old now. I think she was born like just before.

Yeah. So he's probably, he's probably been about five years. So she's running around. So she's, she's. she's experiencing daddy in the prison visitation room growing up yeah she'll be fucking 15 before he's out yeah she's adorable god damn and uh yeah he got 17 years because he was a sucker yeah he's a sucker yeah exactly uh because he was a fucking mark and he made the mistake of going to go into going to trial to me you should have fucking tried the plea

i would have come in and just take him because he didn't know any better how many how many years they give him for the plea no he probably would have got three or four years Oh my God. Wow. Absolutely. No way he would have got more than three or four years. His lawyer really fucked up. Do you understand that the guys that committed the crime that are hands down guilty?

Got half the time he got. Not even. Not even. Not even. One guy is seven years. The other guy is 70 months. Yeah. They're out.

Damien's out. Blaine's out in another year or two. Donovan got fucking a decade left. He should sue his lawyer. That's probably happening. So, okay. So here is why did. This is why the Orlando, why, this is what they've come.

Why they didn't indict him on the Orlando stuff? In Orlando, right. Yeah. So, Blaine told the, Blaine told the IRS agents. By the way, the IRS, it sounds funny, the IRS agents are essentially like a Secret Service or FBI. They're massive now. Like, people don't realize, like, are the IRS? Bro, they're investigating,

this is, the IRS isn't investigating just, um, just tax taxes. The IRS is investigating the same kind of shit that fucking, anything to do with money. Mm-hmm. So they're practically like the Secret Service or FBI.

Wow. So they come in, they're investigating and the pilot, remember the plane? Yeah. There was a pilot by the name of, of, uh, fuck it,

uh, his name is Wiley. His last name was Wiley. Mm-hmm. his first name here somewhere. Anyway, so Wiley was the pilot for Capital Blue. He's also the pilot for several other rich people. So he tells Blaine, hey listen, if you, I know, I'm on a first name basis with Hamburg,

U.S. Attorney Hamburg. And I know him and I can get him to not prosecute you guys. Give me 10 grand and I'll make sure that he, I'll make sure he just passed. on it because it's questionable. And so he says... The pilot says that to Blaine. Tells Blaine that. Blaine gives him, approximately two to three weeks after the Naples office

was shut down. Blaine gave Wiley $10,000 in cash. He said he was scared. Wiley said he was going to pay off Roger Hanberg. Wiley had indicated that he knew

Hamburg on a one-on- one basis. Davis said that, which is Blaine. Blaine said said there should be a debit out of his region's bank account.

Blaine said that his wife Malini, oh God, Malani, whatever, was in the car with him when he gave

Wayne the money. He also recalled that he talked to his father about the matter and his father was aware that he'd gone through with it and given him the money. Okay. Wiley told Blaine Davis that he would make his life hell

if he didn't pay him the money. So is this pilot just another scammer? Or is he serious? Well, I don't think so. Basically, because here's the thing, that happens, and then they don't prosecute. They don't prosecute them.

They don't prosecute them. So what's the reason that they didn't prosecute them? Years went by. Yeah. It wasn't like two months later they handed it off to the U.S. attorney or to these guys in D.C. Years go by. Yeah. So we're talking about four or five years go by before D.C. gets involved.

Okay, so Wiley. By the way, Wiley's name. Pilot is named Kevin. Wiley. Blaine says he paid him off. Did he? I don't know. But I do know that Hamburg didn't prosecute him.

Right. So the other thing is there's a guy by the name, there are two guys by the name of Joseph Langston and another guy by the name of Richard Scruggs. It's a tough name. S-R-U-S-R-U-G-R-E-G-J. Okay. So we got Richard Scruggs and we got, we got Scruggs and we got Sluggs and we got Langston. Langston happens to know Wiley. Wiley was his pilot. Well, Langston and Scruggs end up getting indicted for bribing judges.

In fact, out of Mississippi, they end up bribing a bunch of judges. Scruggs has one of the largest tobacco settlements. in U.S. history. He convinced 46, in 46 different states, he convinced multiple tobacco companies to pay out $246 billion. He made over a billion dollars himself. He's one of the richest fucking attorneys ever.

Holy shit. Here's the interesting part is he did that. Part of the way he did that was bribing judges. Yeah. Judges, juries, lawyers, everything. So when these guys get indicted, they got a major fucking problem. The problem is that... Because they got dirt on everybody.

Right. So when the government steps in and they've indicted these guys, do you prosecute these guys? How hard do you prosecute these guys? When these guys are going to touch judges, prosecutors, other law defense attorneys, they're going to... And one of them is a U.S. senator? One of the guys that was involved was a U.S. senators. Think about a senator can put pressure on these tobacco companies. Just sell, just sell, just sell.

So they come in, Langston gets indicted, Scruggs gets indicted. They need to get, they come in, they are going to plead guilty, they plead guilty, but they're going to get their sentence reduced. How can you get your sentence reduced? You have to cooperate. Yeah, you got testifying. Right. Yeah, but if Danny and I both plead guilty, who am I cooperating against?

I don't really have anybody. So the more you can provide, assuming you have stuff to provide, which they don't have a lot to provide. So they're trying to get a sweetheart deal. Well, Wiley ends up telling Langston, listen, I can give you information. And give you information on a company that's about to be indicted. They're going under. They stole a bunch of money. It's a Ponzi scheme.

I can give you information. You can give it to the government and you'll get a reduction for that. And so Langston says, okay, and I have the report, that's the report where I said, I had that report where this was when he talks to the FBI. Oh, Joey Langston. Langston gives the information, the source of the information was Kevin Wiley. And Langston gives the information to the IRS. Well, what happens is the IRS ends up saying, and it's all on capital blue. They talk about capital blue. At his sentencing, they talk about how he gave information about capital blue and they're going to reduce.

reduce this sentence because of this information he gave on Capital Blue. Okay, Danny, for you to get a reduction, you give information to someone. So I tell on you, you get sentenced, you get, you found guilty sentence, and then I get my sentence cut. In 2007 or eight, he was given a reduction on his sentence. He got 30, he got three years. He got three years. Capital Blue wasn't prosecuted until 2015. So you gave the information, you got your sentence cut, before Capital Blue was even went to trial.

He'd already served his time and was out. Years before. Wow. Years before. Now, the other guy, I'm pretty sure that Scruggs is still locked up. He didn't have the information. And the problem is that if you look at it, the IRS, the agents say that the information he gave didn't help at all. It was useless. But they used it to give him a reduction.

So how do you cover up all of this? How do you make sure that he did give us information and we did use it and it did help? You have to have the prosecution. But Hamburg won't prosecute. So D.C. comes in, takes the case and they prosecute because we want to make sure there's prosecutions and there are people found guilty because we give this guy a sweetheart deal. Right. So to me, that makes sense. it's a loose connection

but it's a connection for sure and it's all capital blue and it doesn't make sense you gave this guy a reduction for something that just doesn't happen it doesn't happen so anyway so that's that's all the whole thing is

and here's the thing is that anything that Donovan files Mendoza automatically denies and you were asking like why would he do that why does Mendoza keep doing it so the only thing that makes sense to me is one, it was his first case. Two, you're bringing up mistakes

that he made. So my first case that lasted eight or nine days costs probably a million dollars to try. And I kind of botched the case. I let in evidence and I got a guy that says he's guilty and he went to prison. It's better for me to keep him in prison than for me to say I fucked up let's give them another trial let's fix this I don't want to say that people don't own up to their shit yeah they better off bury it

and what does it matter we've got some black guy who digs digs holes he sells dirt yeah so is he as important as a federal judge's reputation no of course not let him do the time

and honestly I'm sure in the guy's fucking innocent just like the Mueller thing yeah kind of they don't want to they don't want to tarnish their reputation yeah they're not going to

to take the fall for fucking these guys. Yeah. Same thing with Rucini. He's a drug dealer. Let him sit in prison. Same to this guy. He's just some black guy that digs dirt. What does it matter?

Let him say. And in his mind, I'm sure he's justified it too. Yeah. Keep my dude. Donovan, he did get people to invest in the, in the, into a scam. Right. Yeah. And look, maybe even Mendoza initially thought.

But damn, he didn't deserve 17. Right. But when he gave it to him, he probably thought he did. Yeah. But since then, you've got, you've got, at this point, Mendoza knows. There's overwhelming blowback. Why?

Right. Why is the government destroyed evidence? Yeah. Why have they destroyed? Why did they erase the... Servers, hard drives, laptops. Exactly. And what about these witnesses?

Why these guys, the affidavits? At this point, he's making shit up to deny it. Oh, they're all in the same thought. What are you fucking talking about there in the same thought? That's a crazy ass excuse. It was Frank Amadeo. Right. It was an Amadeo.

He's fucking doing that. No, it's not. I mean, he's not. even looking into it. So the other thing is, and we had mentioned this was, what was funny about, is that,

so I get out, right? I get out of prison. All this stuff's going on. And since I've gotten out, I was still in the halfway house when I talked to Damien. So I talked to Damian.

I tell Damian, look, man. I ask him, you know, to look at the story and help me with the story. Yeah. Let's write a backstory.

What's your opinion? What do you think? Donovan's ready to talk. He's ready to tell everybody. I didn't do it. Damien spins me. Oh, I read the story a long time ago when it was on the website. I'll let you know.

Let me read it again this weekend. I call him after the weekend. What happened? Did you read? I didn't get time. I'll read it in a couple days. Call him again a couple days later. Oh, I started to read it.

I'm going to read it this weekend. I didn't do it. Then eventually he just doesn't answer the phone. to return a text. Yeah. He didn't want to talk about it. So I tried to have a discussion with it. He just won't even discuss it.

He keeps spinning and spinning and spinning and spinning. Blaine, on the other hand, Blaine's fucking a maniac. Blaine has an assistant that sent me, while I was in the halfway house, sent me a fucking email saying he had read the whole thing and that it was just nothing but blatant lies. And I was like, so I can't. He said, and if I didn't remove it, within the next 10 days, he was filing a lawsuit. So I came back and I said, well, first of all, I'm not going to be threatened.

I feel pretty confident that I am protected by the First Amendment. And that even as a felon, you can't take that from me. I said, and you're some fucking guy in prison. I said, so listen, listen, I said, I'm not doing that. But what I will do is this, Blaine. I said, anything in this document that you show me that I cannot prove or that I've said is 100% true and isn't, I will certainly redact it or I will rewrite the entire thing based on the evidence you can provide. Right.

So he comes back and he says, you said this and you said that. And I, and he knew, where did you get that information? And I said, well, I got that from the IRS agent, no, the Secret Service agent that, no, it was the FDLE agent that testified at your sentencing. Or that it's testified during your trial, the trial that you lost. Are you saying that the FDLA agent wide? Right. Or FBI, whoever it was, I think it was FDLE.

Are you saying he lied? Because you lost trial, so clearly it was believed. So I feel pretty confident about that one. Well, where did you get these numbers? There's no proof that I have any offshore accounts with any money in it. And I go, where did I get the offshore accounts? Well, here's where I got it. And then I say, this document, this, this, this.

You told the IRS agents this, this, this, this, this. He said, and I have proof that money was wired here, here, here, and I have proof that you went in. So I explained the whole thing. passes on that. Then he comes back, well, what about this? You said this.

I said, where did I get that? I got that from your factual stipulations, which you stipulated to at sentencing. So I got that from what you said. Or are you telling me that you lied to the court? Because that's where I got that from what you said, what you agreed to.

Oh, God. He comes back. Well, you said that the FBI proved that I was funneling money offshore. You don't know what you're talking about. He goes, the FBI, This went on for, by the way, a month.

Back forth, back through his assistant. Yeah. He comes back and he says, he says, the FBI wasn't even involved in my case or in Capital Blue. You don't know what you're talking about. And I come back and I go, Blaine, I said, you're absolutely right. But when I did a Freedom of Information Act for a PFG and on Woosendorf, coupled with a request for any information with Capital Blue, I got the FBI documents which stated that you were liquidating the assets, you were liquidating the company and you were shipping all the money offshore

and that Woosendorf was working with you to funnel money offshore. And I gave him the actual numbers of the documents. And I said, I suggest you to do a Freedom of Information Act for the Chicago field office for the FBI. You'll get the same documents. I never heard from that motherfucker again. He told me he was going to sue me. No, he knows you got it covered. I got you.

I'm not fucking around. What happened to Wusendorf? Oh, Wusendorf? He's still in prison. How long? Oh, he got like... He's done! Oh, he was done. He got like a hundred fucking years.

He went in at 70. He goes in it like, yeah, like, I think it was... He's probably... He had a good run, though. Over 65, at least probably, 65 or 70. Yeah. Poor bastard. Yeah.

Tried to off a fuck. Poor bastard. He's like half a billion. These guys are a game of mine. No, I don't mean that. Half a Billy. 20 fucking years. Woked up handcuffed to the bag.

Yeah, that sucks. Isn't that the saddest part? That is a satisfactory. I almost feel like, God, I was rooting for you to kill yourself. I'm surprised you didn't do it in jail. I mean,

one, your Ponzi scheme, although you had a good run, your Ponzi thing falls apart, and then you figure, fuck it, I'm going out on top, and you botched that.

Fuck. And you left a note? And you left a note. Telling all? I mean, he's done anyway, but yeah. He told all.

Still. That is funny. That sucks. Wow. But I don't know. What's the fucking moral of the story, man? I mean,

Listen, man, whether you're guilty or, I mean, just plead guilty, bro. Just take the plea. If the feds came in right now and said, listen, Mr. Cox, we've just indicted you on a 10-kilow conspiracy. Yeah. Take it to trial. We'll give you three to four. Yeah. We'll give you five years right now.

Or you can go to trial and get 30 years? I'd be like, well, girl, can we work out a deal? I mean, yeah, five years. That's not bad. Can I get the drug program? Can we, do I hear three? I mean, I'll work with you. I've never seen cocaine.

I don't know anything about it. But I'm pretty sure you're. You're going to get five guys to testify against me. Yeah. And I can't go to trial. And yeah, sure. Okay. I'll take the five.

Can I get PTI? Yeah. Appreciate that. Fuck. Yeah, you're done. Shit, dude. So, yeah. I mean, you know, this is a lot of issues.

I think that... You think Donovan ever, like, clears it and gets out earlier or no. He does the fucking whole, the whole shebang. The problem is Mendoza. He's unwilling to step outside of his own ego. Yeah. and say, let me look at this with a clear set of eyes and say, at the very least, he deserves a new trial. The problem is if he gets a new trial, they won't bring them to trial.

They'll just drop the whole thing. They'll come to them and say, look, man, listen. It's fucked up. Right. Take a plea. We'll let you out of time. What would that trial cost? Well, trial probably cost another million dollars.

But the fact is that you can't put any of these people back on trial. You can't put, listen, you've got, now you know. There's too much fucked up shit. Donovan now knows Blaine's not going to back up Damien. We now know that we can put all this in front of the jury and prove that these emails are bullshit. This whole thing falls apart very, very quickly. The receiver's dirty. You don't have all these events.

What really got them was that you have investors standing up there saying, I put $100,000 in of my life savings and Donovan told me to put the money in. Right. Like I said, the amount of money that they sentenced them on, even if, so what if you believe, let's pretend for a second that you believe that he actually knew halfway through. Okay. Why did you sentence them on $17 million? Why didn't you send him to them on $4? Half of it or a little bit.

Why don't you just sentence him on what he actually brought in, which was only a few million dollars? Right. Eliminate the money he lost and the money he brought in was a few million. Sentence him on the few million. Right. He's already done the time. Yeah. That's what you did by the sentencing guidelines.

He's already done the time. Let's say you just hit him just for a general principle of being a fucking moron. Right. Which I'll give you. Time served. Right. They already missed the first five years of his daughter's life. You're done.

He gets out. You banked on people like Roman Daddy who are committing felonies at the time and the government who knows it's going on and put them on the fucking stand anyway. They're destroying evidence. They're covering shit up. I mean, it's fucked up. There's bribes involved. there's there's there's uh there's uh there's testimony that false testimony you got multiple people saying it what is the fucking problem give him a new fucking trial what is the problem i mean

because of your ego yeah fucking what's the worst what's the worst possible thing that would happen to him would it affect his career at all who no no he's got a lifetime appointment judge had a lifetime appointment okay they're not he won't be removed nothing first of all you just but maybe he's trying to make to a bigger position even you know that he may Maybe he may be saying, hey, look, I want to become a supervising, whatever. Right. But I don't see that that really affects you. Look, he's a young guy.

I think he's in his late 30s or early 40s when this whole thing started. You know, he was a state judge. He doesn't. It's his very first case. I think he's made some mistakes. I think he's covering for those mistakes. He just don't want to own up to it. He doesn't want to own up to it.

And the worst thing is now, it's like once you dig in, what do you do? You just can't not dig in. You know, it takes, it takes a hell of a man to step back and say, I fucked up. Yeah. Let's go ahead and move forward. Yeah, they don't like to do that. Because, look, if Donovan won, he knows that at this point, he can't be found guilty. I mean, he can't be found guilty at this point.

Right. He most likely doesn't even get, the indictment basically fails and he basically gets released. Right. And they don't like to let people out. They already sentenced fucking guilty for crimes and shit. Right. And you know, look, and let's face it, Donovan's going to sue you. Yeah.

He's fucking furious. Especially, yeah, you let him out now. Yeah. He's so Mendoza. You let him out after five years. He's suing for a lot of money. It's like he's fucking. You're fucked.

Right. Now it's just self-preservation. Yeah. Fuck, man. So he's, Donovan's in a bad spot. Yeah, he's in a jam.

Man, his fucking wife just, his wife is, she might as well be a fucking lawyer now. She's read so many of these things 10 times. She knows the law inside and out. She knows everything. You imagine,

how do you think she felt when she heard they have the fucking servers, or the, the hard drives, we know that all the emails went through the hard drives. Yeah. We know we can now prove those emails are fake. Yeah. Then finds out they're scrubbed after she calls. Right.

Oh, that, I'm sure that wasn't heart-wrenching. Oh, my God. I feel like your, your heart was ripped straight out of your fucking chest. Yeah. Every single time. I mean, and keeps having to go every two weeks to see. Shout out to her for being so strong.

Yeah. That's a shame. Yeah, that sucks. I'm ready to go eat, bro. Yeah, I'm ready. Thanks for fucking sharing that story, man. Listen, that was a good one. Subscribe to my channel.

Subscribe. Inside true crime. Inside true crime. I need the. YouTube.com slash, is it slash inside true crime? Do you have a custom URL yet? I don't know what that. Just go to YouTube and type in Inside True Crime or Matthew Cox.

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I got something my probation officer said today. What's your probation? What's your P.O. So listen, did I tell you when I was, same thing when I told you I was in the, in the halfway house and she came to see me the first time. Yeah. She goes, she said, same thing I told you that I told the fucking shrink. She goes, she says, so, she said, what are you doing? I said, I'm doing this.

I'm doing that. She was, okay, I'm working here. I'm working at the gym. She was, okay, so what are your plans when you get out? I'm going to do this. I'm going to do that. And she's okay, so you feel good about it? I said, I'm going to bust my ass for about a year.

I said, I got this. She goes, well, what happens after a year? I said, if after a year I'm still fucking living in someone's spare room and I'm driving and I'm taking the fucking bus to work or something? And she goes, yeah, I said, I'm going to commit a massive, massive fraud. I'm going to leave the United States. And she went, she's, you know, I'm not as shocked by that as you think I would be. And I went, it is what it is.

She said, well, let's hope that doesn't go that way. And I said, well, let's hope so. And so, I mean, I was just, you know, I was just fucking just, you know, I was just angry and pissed off. And I'm like, okay, cool. So I leave. So then today she comes for like a random piss test, right? She stops by. And so I do the thing.

She sits down and she goes, how's it. That's so weird you get a piss test. No drugs. You never had anything to do with drugs. No. Or any kind of substance. Oh, listen, I got all kinds of shit going on. You do understand that I have, I have to see a shrink once a week.

for an hour. Right. I have to do the, I have to call in every day for random urine tests. Okay. They look through all my bank accounts every single,

every single month I have to send them my bank. I'm doing stuff. Nobody else is doing. The judge, you told, you know, they're like, you can't work in construction,

you can't work in development, you can't work in finance, you can't work in bank. Bank account, you can't work in real estate. I mean, I'm, I'm extremely restricted to what I can do.

They're very concerned. So, So what happened when you came today? You know, I did the UA and I gave it to her and we were talking and she's a very nice person. Yeah. So, but she says, so how are you feeling this and that? They're very concerned about my levelings of anxiety. Yeah.

So she's like, you feeling anxious? You're okay? I'm like, I'm all right. This and this and that's okay. She's everything going good. Like, how do you feel? I feel good? Everything's good.

She's really, you know, they want to make sure you're acclimated. They're not, she's not an asshole or anything. Yeah, that's nice. she goes, but she's strict. And she said, she goes, so do you remember when we talked in the halfway house? And she goes, remember you were saying that after a year if things weren't going well? And I was like, oh, yeah, yeah, yeah. I shouldn't have said that.

Yeah, she goes, yeah, she goes, yeah. And she goes, how are you feeling about that? She was, because, I mean, it's coming up on a year. And I was like, I said, I was fucked up at the time. I was really fucked up. I said, and honestly, I said, things are going so well, it would be stupid of me. Right. At this point, I said, at this point, it would be stupid of me to do anything.

She's like, you're sure, you feel okay? I said, no, I feel good about it. I'm doing well. Everything's going good. Things are going well. The books are selling. I'm doing the YouTube thing. I said for the website.

I said, things are moving forward. I said, I've got this documentary. Yeah, they're going in a good direction. I got a documentary. You're on a great trajectory right now. I got this thing with a, um, this production company in Los Angeles. I mean, I got a whole bunch of shit that's going on.

Yeah. That's going well. And she's like, so you feel an okay? I said, so that's probably off the table. I said, that's off the table. It's gone. Off. And she says, a look on her face was like, like, don't fuck with me.

Yeah. It's never off the table. So I thought that was funny. Anyway. Hell yeah. Yeah. But she's all right. Good. Cool.

We've got to keep you out of jail. Yeah, we're keeping out of jail, keeping him on the, the path to success that he's on right now. So give him all the love and support you can.