Former Ore. GOP chair arrested on multi-million dollar fraud charges
PORTLAND, Ore. -- The Securities and Exchange Commission on Tuesday charged high-profile former Oregon financier Craig Berkman with defrauding investors who wanted to buy coveted pre-IPO shares of Facebook and other social media companies.
Berkman, 71, has also been arrested on criminal charges of securities fraud, according to a news release from the U.S. Attorney's Office for the Southern District of New York.
He has been charged with two counts of securities fraud and two counts of wire fraud. He faces a maximum of 20 years in prison on each of the four counts. He could be fined as much as $5 million or twice the gain on the securities fraud charges, as well as fines for the wire fraud charges.
The criminal complaint alleges that Berkman received at least $8 million for shares of Facebook that he did not own or control. He was arrested at his Odessa, Fla., home on Tuesday morning.
The SEC alleges Berkman fraudulently raised at least $13.2 million from 120 investors.
"Berkman blatantly capitalized on the market fervor preceding highly anticipated IPOs of Facebook and other social media companies to fleece investors whose cash flow he treated like an ATM to fund his own living expenses and pay court-ordered claims to victims of his past misdeeds,” said Andrew M. Calamari, director of the SEC’s New York Regional Office, in a news release.
Berkman previously managed some of Portland's largest investment funds. He was found guilty of taking money from investors, breaching their contracts and breaching his fiduciary duty in 2008. He moved to Florida after the resulting judgment forced him into bankruptcy. He is also a former chair of the Oregon Republican Party.
The Portland Business Journal is a KATU News partner.
Craig Berkman is a multiple offender who should spend the rest of his life in jail. He is Oregon's (formerly) answer to Bernie Madoff but Berkman never learned how to steal at the big league level.  But he did spend a whole lifetime ripping people off It's only been in the last decade that he was finally caught. Many wealthy people lost money to Berkman over the years but most were too embarrassed to turn him in; always believing he would pay them back. Berkman is a con man, a common ordinary thief who lies to get other peoples' money.
Take a survey of all the prisoners in Oregon's jails and prisons. I'm sure the majority probably supported Obama.
@Lei22Â They can't vote. Â They could support a watermelon and have just as much impact.
Democrats walk. No one arrests THEM.Â
Of course, no one would arrest a Democrat because the entire legal system, police and prosecuters are all in the same political party.
Folks, it's time to wake up and see that politicians from both sides are ripping us off left and right.
The guy is indicative of the overall problem of the rich getting richer through their connections with the crooked politicians.
Those that are trying to make political hay out of that are part of the problem as they ignore the fact that the politicians are successfully setting us up against each other which is nothing more than a way for them to distract us and steal even more money.
Surprise Surprise....Perfect Mitt crowd.
@eyeonchinaÂ
Really? Most criminals in prison probably would choose Obama to support. Work with the poor - learn something!Â
@Lei22 @eyeonchina Since criminals in prison don't vote, what exactly is your point?
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@lousecrapton
Give me a break. Are you really that ignorant to think that this stuff is only limited to Republicans?
In case you weren't aware the biggest financial scam ever pulled off was Bernie Madoff who was a hard core Democrat. He ripped off more money to the tune of 2,250 times greater than this guy is accused of doing.
Get off you political hack band wagon and face reality. All politicians are criminals. Most just haven't been exposed yet.
Ralph, glad you reminded folks about this boy wonder of pantheon significance to the Dems. He was revered by most east coast libs as an oracle of all knowing, all seeing financial prowess, in spite of numerous warnings over the years that the investment end of his company was a house of cards. Bernie boy compounded his error by committing the unpardonable sin of fleecing his own people, thereby breaking the involuble commandment of "Thou shalt not ever screw thy fellow Jew."
Why doesn't this surprise me.
@rchnpdxÂ
Because you live in Portland and follow everything that Democrats tell you?Â
You see, this is why we need to repeal Dodd-Frank. Not only did it retroactively cause the housing bubble and financial crisis, but it has placed undue burdens upon guys out there just making a buck. Mr. Berkman made millions  and was a job creator before some Washington bureaucrats stepped in...
Sounds like business as usual for politicians, no matter which party they are from. Â The democrats do have the overwhelming lead in dishonesty and immorality. Â That's how his majesty was elected in 2008 and again in 2012.
@Shadow C'mon, Shady -- you can do it -- I have total faith in you.  Just one little link, k?
@Shadow Ten years ago today we invaded Iraq. How have the Dems managed to top that one when it comes to dishonesty and immorality?
@Max Quinn   Well....Hitler was a democratic socialist....does that count? But, aside from him nobody there just aren't any good examples of Democratic leaders that started an illegal aggression based on lies and ruined more than one country.Â
On February 28, in 1961 John F. Kennedy appointed Kissinger as consultant for foreign affairs.  Kissinger, a Republican, was responsible for a majority of the political backstabbing, war crimes and crimes against humanity in Indochina, Chile, Argentina, Cyprus, East Timor, and several other places. He was appointed as an advisor to a Democratic President as well as being retained through a number of other presidential terms by Republicans and Democrats.
Presidents arenât as powerful as the credulous believe, there are others that are strictly in politics for personal gain or to see and guide their ideals through to fruition.
@Sendero    Hmmm....it's true that Kennedy sent advisers and that whole thing became a slippery slope that was significantly accelerated by Johnson. However, the unifying thing about the other two examples is the unilateral attacks, the general hubris, the lies, and the appeal to nationalism....all resulting from an "election" and very questionable rise to power. These were not so present in 1960...also the sending of "Advisers" to Vietnam was justified by the Domino theory and the Monroe doctrine and several corollaries.
I would grant partial credit for Vietnam but you didn't show any work to make the argument. There is a 2% correlation between Vietnam and Iraq and a 98% correlation between the other two examples.
Try Vietnam
thats the most blatently bunch of cr#p I've ever read.....let's compare some facts duchebag...over 480 charges during the Bush Administartion (GOP for 3rd graders like you) ranging from misdemeanors to felonies......103 during Clintons run and 53 since 2008......you need to check your facts before the dribble in your brain is sent down your nerves to the key board.
Just goes to show that we had an objective Department of Justice back then.
@SKVmutant  I appreciate the passion, Bravo.    It is seriously annoying that these fuquetard GOP phallus chokers spew obvious lies like so much jizz backwash and claim that their GOP fetish masters are the only scrupulous political party...and when they are cornered with facts the claim well; at least, they're no worse than the others.
The biggest complaint about the democrats is that they are milquetoasty and spineless and don't have the hubris of the Republican but don't claim they are unethical outright.
@Shadow I've asked you time and time again (and you run and hide or delete your comment), but could you provide a single link to what you espouse to be true?
Who was it that ran Enron into the ground then was saved by dick chaney and made head of KBR's Iraq operations...
Must be nice to have rich friends to screw.
@tally Yes it is.  Oh -- were you talking in generalities or specifically about this story?
The biggest theft and fraud against Medicare $ 4.5 billion was done by rick scott.
After they were caught he bailed was givin or took a $350 million bouns payment.
Then became the Gov of Florida.
Then sold the company to mitt romney...
The government only got back $2.5 million..
Send him to jail for 13.2 million years. One for every dollar he stole. When he gets out he should feel some remorse!
Our government is an incurable cancer..... A true plague upon the people it hasn't represented in many years!
The GOP has so many righteous members it is just strange how they consistently run afoul of all those pesky socialist laws intended to protect the public and social order.Â
Don't you mean socialist order??
@Icarus Democrats have just as many. Don't kid yourself.
prove it...you can't
@Liberty4_WAÂ
Don't kid me....for every Democrat you name I'll name four Republican liars caught in scandals of malfeasance and lies, I'll start: Bush, Cheney, Rumsfeld, Rice; the four horseman of the illegal attack on Iraq and the keystone play to bilk the American tax payer out of ....at least....$100 B in "lost" money in contracts to private companies.Â
@Sundowner. Had to, obviously Icarus hadn't comprehended it the first time, not unlike you and the rest of the "typical" libs on here. Now go back to your bridge game.
@Biker1085 @Icarus Did you think by saying it more than once it would be more believable?  That IS the FoxNews way....for the feeble-minded.
@Icarus, so Rostenkowski, Traficant, Jesse Jr., Reynolds, Rangel, Weiner, Barry aren't/weren't democratic politicians?? So who's the fool now Icarus? I just threw in the others for good measure. Best you go back and get your diaper changed....you're still wet behind your ears you young socialist fool! I know liberals don't see, hear, or read well. Hence my repetition. The FAA has been controlled and answers to all the major airlines, and has for years, since the formation of the CAB (Civil Aeronautics Board). The FDA has prevented more effective and less expensive drugs from reaching consumers at the behest of big pharma to shore up and protect their profits since the FDA was incorporated (1906). Go get your facts straight sonny boy. Obviously what little brains you have (had) were flushed down the toilet during your last bout of diarrhea.Â
Oh my Icarus, touched a nerve did we. Like all libs, progressives, socialists, et. al., you've flown too close to the sun (reality) on your journey to your perceived northstar (Adams, Wu, Leonard, Kitz, etc.), your wings melted (along with your arguments) and you fell back to earth (common sense). You dredge up a couple of kook articles from leftist publications in an attempt to shore up your crumbling arguments.  That's funny, most adherents of socialism (libs, pregressives) have never had to actually live with the effects. Try asking the folks in Eastern Europe what they thought of it during the 20th century. They can't run fast enough from it. I guess one advantage was.........the bread was fresh after waiting in a que for hours. Now, Icarus, go take an laxative to encourage a bowel movement (nothing worse on here than a "naive constipated liberal"). Then google "recovering liberals" online to find a meeting to attend to mitigate and correct all of the misinformation you've been spoon-fed throughout your short life. Oh, and you should wear cloth diapers instead of Huggies, better for the environment. Â
@Biker1085Â
And Bikertard since you are so desperate for information I'll point you back to these articles so that you understand why you are so desperately seeking anything to smear Democrats:
 http://www.motherjones.com/kevin-drum/2012/11/republicans-desperately-need-scandalÂ
http://www.politicususa.com/republican-desperation-grows-benghazi-backfires-scandal-talk-fizzles.htmlÂ
See you're just an adherent/toady to a corrupt political party that cannot exercise it's inherent corruption and can only make itself look better by smearing Democrats....that is the definition of pathetic.
@Biker1085 Milkin, maydoff, boskey, levine.......etc. Look fucqutard you're an idiot ....since you're tossing things go toss you own salad.Â
And, you think socialist is a pejorative? I dare to you board a plane that wasn't regulated by the FAA or eat beef or take drugs that wasn't regulated by the FDA.Â
@Icarus, so Rostenkowski, Traficant, Jesse Jr., Reynolds, Rangel, Weiner, Barry aren't/weren't democratic politicians?? So who's the fool now Icarus? I just threw in the others for good measure. Best you go back and get your diaper changed....you're still wet behind your ears you young socialist fool!
chump change? just add all the chump change up from all the fiascos....it's our change they got and it's treasonous.
@Biker1085 Those are not politicians fool....do try to keep up and if you can't remain quiet. Â
@Icarus. Okay.....where to start.........like shooting fish in a pond......Ivan Boesky, Israel Levine, Michael Milken, Bernie Madoff, Andrew Fastow, Dan Rostenkowski, James Traficant, the dual windbags from Chicago Jesse Sr. & Jesse Jr., Mel Reynolds, Charles Rangel, Anthony Weiner, Marion Barry, Al Sharpton, Alton Maddox, Mark Rich.....and the list goes on and on...all dyed-in-the-wool dems......
I think the point of previous posts is that ALL of them need to be watched. No party has the foothold on corruption. Don't let your own party affiliation blind you to what YOUR side, whatever that may be, is doing. Most of the time it is the minority of any party, not the entire party that is corrupt, and it is individuals, in most cases. Power corrupts.
@Icarus @tally Common knowledge
I have no problem with that. Good on them, I just wish I coulda got in on the scam. As do you!
@lakeview   So you're suggesting that it doesn't matter if a handful of Deadeye Dicks cronies got away with a hundred billion dollars because the cost of the illegal war totals into the trillions?   And the American people will continue to pay for the war damage for decades to come?Â
@tally Name the conspiracy and the charges...the actual evidence e.g. court decision and or the dishonor.
@Icarus @Liberty4_WA Obama and Jackson junior and blago-name another 8 republicans
@Icarus @Liberty4_WA The Iraq War's official cost was about 900 billion. When you add everything up, the number is going to be several trillion. The billions of paper currency that mysteriously disappeared for "reconstruction" at the very beginning is chump change.Â
@Icarus Democrat controlled Chicago and there Democrat politicians like Obama have been some of the most corrupt shady politicians of modern times. Now the city is bankrupt and the State has to takeover. Democrat controlled... Democrat disaster. Just look at Cali. Bankrupt State... Blue.
@ SKVmutant Which covers most of the job creating businesses (250K + in yearly revenue). Where do you think the real job growth takes place at, in macramie, incense and assorted trinket shops?? These places aren't going to produce the kind of revenue and job growth needed to keep the economy rolling and create family wage jobs. Duuuhhhh, shot yourself in the foot again. Better clear that woody biomass out from between your ears. You to sundowner.
@Icarus @Liberty4_WA Nice smack down!!
excellent job! maybe the Demo haters could check the facts before putting their foot in their mouth....er, I'm mean keyboard!
 What the GOP lovers forget that if you don't make more than $250k per year, any economic plan the republicans put forth actually hurts you...duh.
ummmm...Cali has problems because of conservatives....check out what reagan did and then get back to us
@Icarus @Liberty4_WA The parties working together
@Liberty4_WA @Icarus Funny blogo and Jackson JR had the common link of obamas former seat
@lakeview That doesn't set Oregon apart from other states. Â
@Liberty4_WA
Your effort to smear the Democrats with the same nasty stick as the Republicans is a pathetic attempt at the old playground defense "he threw sand first" in an attempt to make yourself/the GOP by wrongly accusing the other side of the same malevolent behavior.  It's bullschyte.
 So OK...I'll play.... you wanna go Chicago?  That's easy the GOP is imploding with scandal in Chicago:
Jeremy Rose Resigns: Cook County GOP Official Leaves Amid Growing Scandal; 2012
Pat Brady, State GOP Chair, Ousts Chicago Young Republicans President As Scandal Grows :2012
 Candidate for Chicago Republican chairman uncovers fraud in own voting records:2012
Shocking âBig Stuffâ! Low Level Republican Official Resigns; 2010
 ~ the funny part is that the Republicans can have so many scandals at the same time in Chicago alone.
So here is your motivation; your marching orders....since it is clear that you tote water for the GOP.Â
The following article explains your motivation behind your asinine comment about Obama and the Chicago Democrats but you probably picked it up from Limbaugh or Beck or O'reilly without really understanding the motivation behind it or context or the fact that you were just another fool manipulated by the GOP machine.
 http://www.motherjones.com/kevin-drum/2012/11/republicans-desperately-need-scandalÂ
http://www.politicususa.com/republican-desperation-grows-benghazi-backfires-scandal-talk-fizzles.htmlÂ
@Liberty4_WA @Icarus  And Oregon has over 50 billion in debt. Please...