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Douglas McClain Jr. was sentenced to 15 years in prison today (Sept. 23) and ordered to pay $81.7 million in restitution for his lending scheme which defrauded people in the U.S., Canada, Mexico, Panama, China, England, and Belgium.

According to evidence presented at trial, McClain's Argyll Equities did business in San Diego, California, Florida, Texas, and Georgia. He would falsely represent that Argyll would lend money to corporate executives who would pledge stock as collateral.

McClain would promise the stock would not be sold unless the loan defaulted. However, according to evidence presented at trial, Argyll would sell the stock immediately, thus giving the company the appearance of having money to lend. Borrowers were told their stock would be returned when the loan was paid off. But McClain gave phony excuses on why he could not return the stock that he had already sold.

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Comments

Visduh Sept. 23, 2013 @ 6:08 p.m.

Fifteen years? He must have really offended a prosecutor, along with the judge. It may represent the sort of punishment that should be meted out to "white collar" criminals, but isn't this unusually severe by today's standards? While the post doesn't mention his age, I can imagine a defense attorney claiming that fifteen years is tantamount to a life sentence, and is too cruel.

Then, where is he going to come up with $81 million-plus in restitution? I strongly doubt that he has access to anything more than a small fraction of that sum.

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Don Bauder Sept. 23, 2013 @ 7:20 p.m.

Visduh: Agreed: it's just about right for his crime, but less than what judges are handing out for white collar crime. Forget the $81 million. It won't be paid. Best, Don Bauder

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