Mike Madriaga 12:40 p.m., May 25
Stock swindler sentenced to 15 years
His lending scheme smacked of a Ponzi
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.