But my fears had less to do with the tragedy at the World Trade Center and more to do with the fact that, after 10 years of rampant prescription opioid abuse, my business was failing. I was searching desperately for an out. Meanwhile, the television and radio were blaring with ads for 9/11 FEMA loans administered by the U.S. Small Business Administration.
So, on an especially bad day, I lied.
I said I had an office near ground zero. I received the SBA loan I requested, and immediately paid down the personal credit cards I had run up while waiting for the SBA money. Even so, the loan did little to stop my spiral into drug addiction, mental health issues, marital problems and magical thinking.
In 2002, I resigned my law license and started on the road to recovery. But it all caught up with me about 20 months later, when I was arrested for the misrepresentations on my loan application. I served almost 14 months at a Federal prison for wire fraud and money laundering.
My objective in writing this piece is to offer some insight on what business owners should consider before they take out disaster loans. Certainly, the majority of people requesting these loans are honest and upstanding entrepreneurs who have immense need for the aid, and will use the funds properly. I am very glad there is help for them. That said, history has shown us again and again that when people are in dire need, they’re more prone to make impulsive, ill-advised decisions. My hope is that sharing my experience will help others avoid the consequences I faced. Here are seven takeaways.
1. Desperate people do desperate things.
There were thousands of fraud prosecutions after 9/11, Hurricane Katrina, Superstorm Sandy, and so on. Why? Whether because of overwhelming business issues, poor personal judgment, or just plain bad luck, people were wounded, desperate and willing to do anything, anything, to stop the bleeding. But if the wound is too deep, a Band-aid is not sufficient.
Practice point: In any situation, behaving desperately is unlikely to save your business.
2. Beware of the belief that rules are suspended in times of emergency.
The government is advertising that huge amounts of money are available to save our businesses. I recently sat in on a webinar run by a very reputable business consulting group that recommended that attendees get their SBA disaster loan applications in immediately, regardless of the facts or the actual needs of their business — they said we could always modify our applications prior to taking the money. State unemployment websites are actually giving instructions, in writing, on how to mislead and circumvent the system in order to get approved. Don’t take the bait! If you default two years from now, this “good-meaning advice” won’t matter to prosecutors.
Practice point: Be truthful at all times.
3. Beware of magical thinking.
This is a tough one because entrepreneurs are inherently optimistic. We believe that things will always be better tomorrow than they are today. It drives us, makes us successful, informs our risk-taking. But in times of trauma, that voice can be an entrepreneur’s worst enemy. Does this sound familiar? We have learned the hard way that there is no shortcut, and yet we desperately want there to be one right now.
Practice point: Instead of immediately reaching for a bailout or other quick fix, develop a good solid business plan. Maybe a disaster loan will fit into this plan; maybe it won’t.
4. This paradigm shift will affect all small to mid-size businesses.
We are in the midst of a massive reordering that has already had a huge effect on small and mid-sized businesses. Business owners are being called to closely examine if our business models are still viable, or if we must pivot to new ways of doing things. Example: the Swiss watch industry completely missed the shift to digital watches. Have we waited too long to have a robust online presence? Are our products or services even needed anymore? Have we been holding on by a thread for years, unwilling or unable to look at the hard facts?
Practice point: Get real, now. Don’t borrow money to save a business that can’t be saved.
5. Be cautious when borrowing from the government.
As is the case with any loan, the devil is in the details. The terms and covenants in the loan documents dictate what you can or can’t do with the money once you get it. You can only use the funds for the purposes you stated in your application — that is, to pay operating expenses of the business to keep it afloat until it starts bringing in sufficient revenue again. You (and your spouse) will probably have sign for the loan personally, and will probably have to pledge all available collateral, including a second (or third) mortgage on your house. If you maxed out your personal credit cards while anticipating your disaster relief funding, you can’t use the money to pay off your cards.
Practice point: Read the terms and covenants of the loan closely. Whatever the loan terms say to do, do, and whatever they say don’t do, don’t do. No exceptions.
6. We can’t save our businesses and our lifestyles at the same time.
Here’s the big trap. We have mortgages, car payments, school tuitions, and other personal expenses that have to be paid, and soon. But simply put, SBA loans are meant to save your business, not your lifestyle. Discuss all your options with advisors and friends you trust — ones that will tell you the truth! It’s like going to the doctor. Your diagnosis will only be as accurate as the history you provide. These are trying times, with a triage system designed to be more expeditious than thorough.
Practice point: There is no such thing as a free lunch. Borrowing money comes with responsibility and accountability.
7. Get acquainted with acceptance.
I hope we are all great entrepreneurs who can figure out ways to make our businesses survive and flourish. But let’s face it. Some of our businesses will not make it, even with the infusion of government funds. What should we do? We can pare down, embrace change and do things differently as we start a new chapter. Never forget that there will always be opportunity to start again, and to live a fuller, more abundant life.
Jeff Grant is on a mission. After a hiatus from practicing law, he is once again in private practice and is committed to using his legal expertise and life experience to benefit others.
Jeff provides a broad range of legal services in a highly attentive, personalized manner. These include private general counsel, white collar crisis management, strategy and team building, services to family-owned and closely-held businesses, and support to special situation and pro bono clients. He practices in New York and on authorized Federal matters, and works with local co-counsel and criminal defense counsel to represent clients throughout country.
For more than 20 years, Jeff served as managing attorney of a 20+ employee law firm headquartered in New York City and then Westchester County, New York. The firm’s practice areas included representing family-owned and closely-held businesses and their owners, business and real estate transactions, trusts and estates, and litigation.
Jeff is admitted to practice law in the State of New York, and in the Federal District Courts for the Southern District of New York and the Eastern District of New York. He is a member of the American Bar Association, the New York State Bar Association, the New York City Bar Association, and the National Association of Criminal Defense Lawyers.
The Philadelphia Inquirer: Steal Money from the Feds? First, Meet Jeff Grant, an Ex-Con who Committed Loan Fraud, by Erin Arvedlund: Link to article here.
Hannah Smolinski YouTube: Thinking About PPP Fraud?: Hannah Interviews Jeff Grant About Going to Prison for SBA Loan Fraud. Link to article and YouTube video here.
Fraud Stories Podcast with Mark Lurie: SBA/PPP Loan Fraud with Guest: Jeff Grant. Link to podcast here.
Forbes: As Law Enforcement Pursues SBA Loan Fraud, Jeff Grant Talks Redemption, by Kelly Phillips Erb. Link to article here.
Taxgirl Podcast: Jeff Grant talks Desperation and Loans in a Time of Crisis with Kelly Phillips Erb on Her Podcast. Link to article and podcast here.
Business Talk with Jim Campbell: Jeff Grant Talks with Jim About Going to Prison for SBA Loan Fraud and What to Know When Taking Coronavirus Relief Money, Biz Talk Radio Network, Broadcast from 1490 AM WGCH Greenwich, CT. Listen on YouTube here.
Babz Rawls Ivy Show: Babz Rawls Ivy & Jeff Grant Talk SBA / PPP Loan Fraud and 7 Things to Know Before You Take Coronavirus Relief Money, WNHH 103.5 FM New Haven. Watch on YouTube here.
Also: White Collar Week with Jeff Grant, Podcast Ep. 09: Small Business Edition, with Guest Kelly Phillips Erb. Link here.
Also, White Collar Week with Jeff Grant, Podcast Ep. 21: All Things SBA, PPP & EIDL, with Guest Hannah Smolinski. Link here.
Save the Date: White Collar Support Group — 300th Meeting Online on Zoom. Monday, March 14, 2022, 7 pm ET, 6 pm CT, 5 pm MT, 4 pm PT. Open to directly justice impacted only. Referrals welcome.
_________________________
Dear Fellow Travelers,
Progressive Prison Ministries and St. Joseph’s Mission Church invite you to join our Confidential Online White Collar Support Group. We hold our group meetings on Monday evenings, 7 pm ET. 6 pm CT, 5 pm MT, 4 pm PT.
We are doing something truly groundbreaking! This is the world’s first Confidential Online White Collar Support Group. As this support group is run by ordained clergy as part of a program of pastoral care and confession, we expect and believe it falls under clergy privilege laws.
We are a community of individuals, families and groups with white collar justice issues who have a desire to take responsibility for our actions and the wreckage we caused, make amends, and move forward in new way of life centered on hope, care, compassion, tolerance and empathy. Our experience shows us that many of us are suffering in silence with shame, remorse, and deep regret. Many of us have been stigmatized by our own families, friends and communities, and the business community. Our goal is to learn and evolve into a new spiritual way of life and to reach out in service to others. This is an important thing we are doing!
Over 400 Fellow Travelers have participated in our support group meetings from Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Vermont, Virginia, Washington and Wisconsin — and Canada, South America, Europe and the Caribbean. All have agreed this has been a valuable, important experience in which everyone feels less alone, and gratified in the opportunity to talk about things in a safe space only we could understand.
We have formed agreements as to confidentiality, anonymity and civility, and have a basic agenda for each meeting:
1. Welcome 2. Serenity Prayer: “God, grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference.” 3. Short Member Introductions, if we have new member(s) 4. Announcements & Resource Sharing 5. Guest Speaker and/or Lead on Topic 6. Member Sharing 7. Closing
Login Instructions and Link are sent out weekly. We have set up an account with Zoom for our group, and you can log in via video on a computer, tablet or smart phone that is equipped with a camera, or audio only via phone. Please use headphones if you can so that we can minimize feedback and background noise. Each meeting will have a different meeting number to best provide confidentiality.
For Newcomers, I (or the night’s host) will be online fifteen minutes before the scheduled start of the meeting. Zoom works wonderfully, however, it might take a little time to get comfortable with on your end if you’ve never been on this platform.
Thank you for referring other justice-impacted people and families: [email protected]. Fellow Traveler volunteers handle information requests and intakes with empathy and compassion.
Press & media inquiries: [email protected]. A Fellow Traveler volunteer who is a public relations professional handles these inquiries.
If you have suggestions for other Fellow Travelers to join this group, please contact us to discuss. Our goal is to be inclusive.
IMPORTANT!: If you are currently on supervised release, probation or parole, it is important that you first discuss this with your P.O. To assist in this regard, information about our ministry is available on prisonist.org.
Please feel free to contact us if you would like to join in our next meeting, or with any questions you might have regarding this group, its meetings, or anything else whatsoever.
Fellow Travelers Mike Neubig and Jeff Grant are featured in this article, and are members of of our White Collar Support Group that meets online on Zoom on Monday evenings.
Pour yourself a cup of coffee, because this is quite a read.
Who’s more despicable: a thief who robs a 7-11 at gunpoint, or Elizabeth Holmes, the former billionaire (on paper) accused of perpetrating a massive fraud with her blood-testing company, Theranos?
It may be easier for the armed robber to be forgiven than Holmes. He wasn’t born and raised in an environment of privilege. She had everything.
There are several programs helping “blue-collar” ex-felons find jobs and start life over after prison, but there are no such programs for white-collar ex-cons. (“White collar” traditionally describes a nonviolent crime involving financial fraud.)
“You had your chance and you blew it,” says Mike Neubig, a former CEO convicted of lying to investors. He’s struggled to find steady work, and he realizes that most people couldn’t care less. He says their message is, “We don’t have sympathy,” but he asks, “How long do you want us punished?”
Even in a tight labor market, where accountants in particular are in high demand, few companies will take a risk on someone who’s broken trust in the past.
There are tens of thousands of highly skilled men and women who’ve done their time and need to go back to work. They’re testing different interview strategies. Some succeed, some don’t, and now some of these former inmates are leaning on each other. “White-collar guys are smart,” one told me.
Meet three men who explain what they did wrong, what’s next, and what you need to know if you ever end up in prison.
THE HIGH-PROFILE AUDITOR CAUGHT IN AN FBI STING
I was surprised several months ago when Scott London reached out to me on LinkedIn with a nice message about an online forum I moderated. Surprised, because the last time we saw each other was in 2013, when I was chasing Scott around a federal courthouse in downtown Los Angeles after he was arrested by the FBI.
But Scott London is a nice guy.
A nice guy who broke the law.
Scott was a senior partner in the Los Angeles office of auditing giant KMPG. He gave a friend, Brian Shaw, insider information on a couple of companies, and Shaw used that information to trade shares and make about $1.6 million.
“I gave him a series of tips over 10, 12 months,” Scott admits. He says he crossed the line from legal to illegal slowly, after listening for months as Shaw explained how his business was struggling. Scott says he had no idea that Shaw would use the information to make such huge gains. “I thought he was going to trade and make $10,000, $20,000.”
Still, “The facts were that I gave him that information,” and in exchange, Scott received money and gifts worth between $50,000–$70,000.
But the suspiciously timed trades netting a whopping $1.6 million got the attention of law enforcement.
The FBI contacted Brian Shaw, and he agreed to set up his friend in a sting, meeting Scott in a parking lot and passing him an envelope filled with $5,000 (money provided by the FBI). This gave the feds the evidence they needed to bring a case.
When federal agents showed up at Scott London’s door, they pulled out the photo of him taking the cash. “I did it,” he told them on the spot, admitting everything.
When we met again recently for this newsletter, Scott told me that when he first went to prison, he was sent to the same facility housing Brian Shaw. He says prison officials were concerned about having both of these ex-friends in the same place, so Scott was immediately put in the SHU (pronounced “shoe”), the Special Housing Unit, aka solitary confinement.
Nobody told Scott why he was going to solitary or how long he’d stay. “It was the worst period of time in my life.” He had no access to a phone for a week, and he spent 23 hours a day in a small cell. “There are people screaming in there.”
He was there for 30 days.
Then he was moved to the general prison population at a federal facility in Lompoc, California, where he spent most of his days doing landscape maintenance at Vandenberg Air Force Base.
“There’s a feeling I used to have daily: ‘How could I be so stupid and do something like this?’,” he tells me. Fortunately, Scott’s family survived on savings and his wife’s income.
Shortly after his release from prison, he reached out to a friend who ran a tech company. “I said, ‘I don’t care what I do.’” The CEO took a chance on him, even though hiring a high-profile ex-felon caused some “awkward conversations” at the company.
Within a few months, Scott was promoted to Chief Operating Officer.
He realizes that his success after prison is very unusual. Scott thinks the main reason he was able to bounce back is because he never denied the charges. Not to the FBI. Not to his friends.
“I had more people advising me, ‘Deny, deny, deny, there’s no evidence.’” But Scott thinks being honest saved his career. “That builds credibility amongst the community you live in.” It’s something he talks about in ethics training for aspiring accountants.
Still, he knows he’ll never again be a top manager at a top accounting firm.
“I don’t think there’s any way that anybody who committed a white-collar crime can go back to the industry they were in,” he says.
THE EDUCATION CEO“I wouldn’t trade it. It’s created the person I am now.”
Mike Neubig used to worry that a potential employer would find out about his criminal record. Now he writes about it openly on a blog.
Mike was the youngest of five children in a poor household. “I felt invisible.” He was also the first to go to college, where a professor was impressed with his writing. “Nobody ever told me I was smart before.” That sparked an interest in education: “I wanted to give back and try to impact the type of kids that I was, that were kind of invisible.”
He ended up becoming a teacher and eventually got involved in restructuring education. He wrote a book, created his own business — Capture Educational Consulting Services — and raised $3.9 million in startup funds from investors.
Then things went south.
He lied to investors about how well the company was doing.
“I think that investors make the assumption that you are ready to handle sudden success, hundreds of thousands of dollars,” he says.
His board fired him.
Then one day two years later when he was home alone, the doorbell rang.
“I peeked out and I thought I saw the sleeve of a policeman’s uniform,” Mike recalls. “I’d never had anything besides a speeding ticket in my lifetime, and my heart started pounding.”
He went to open the garage door to see if anyone was in the back. “There was a bunch of police cars out there, and they came underneath the garage door and said they had a warrant for my arrest and to put my hands behind my back, and I was just in shock.”
Soon everyone heard the news. His wife’s prayer group found out. So did the parents of the football team he helped coach. “People looked at me like I had the plague.”
Unlike Scott London, Mike Neubig has struggled to find a job. His story is more common. As soon as an employer does a background check, it’s all over. Google “Mike Neubig” and see what pops up.
Every time he lands an interview, he tries to figure out when to reveal his past. Sometimes he mentions it right off the top; sometimes during a second interview (but only halfway through, “so that you can finish the interview with reminding them how great you are”); sometimes he waits until after he receives a conditional offer of employment.
None of it’s worked out, even when he’s been told he’s the perfect candidate. Mike has been fired from two jobs after managers discovered his record, and he’s had three offer letters revoked. “Once they know, they don’t want anything to do with me,” he says. “How do you build trust again?”
Even entry-level custodial jobs may be off-limits. “Can you trust the white-collar ex-felon late at night alone in an office?”
THE $140,000 JOB
Here’s one particularly painful example. Mike says he landed a job in San Francisco after his indictment but before his conviction. It was a great job, paying $140,000, and somehow he passed the background check (obviously no one Googled him). He started working, and then he flew to New York for a week of training.
Two days in, his boss calls a meeting. “I start to show him my computer and all the things I’ve done, and I look up, and the lady from HR is on the screen.” The boss revealed they’d learned about his indictment and demanded he immediately hand over the computer. “The lady on the screen says, ‘Tell us a little bit about what happened,’” he says, “but they had already taken my computer.” (I reached out to the company and the boss, but I never got a reply.)
Mike is no longer running from his record. “It’s all over my LinkedIn page.” He thinks it’s important to be public about his past and to share what he’s learned. “As my therapist said, ‘You have to rebuild your whole identity at age 50.’”
He’s even started to get a little work. Newsflash: Just last week, Mike landed a contract to be a marketing director. The company knows his background and hired him anyway. “It’s really brought me self-esteem I haven’t had in a long time.”
Despite everything, he says the experience made him a better man. And his wife and daughters stuck with him.
“It was awful, but I wouldn’t trade it. It’s created the person I am now.”
THE LAWYER TURNED PREACHER “I tried to kill myself that night…”
Jeff Grant was a very successful lawyer in New York who became addicted to prescription opioids after rupturing his Achilles’ tendon. He started stealing money from clients. Then to save his business after 9/11, he applied for a Small Business Administration loan, falsely claiming his office was a block from Ground Zero. “It was a stupid, crazy thing to do.”
He received $247,000.
In July of 2002, when it became clear he’d committed fraud, he surrendered his law license. “I tried to kill myself that night with an overdose of prescription opioids.”
Friends came to the rescue and drove him to rehab. Jeff became sober. Then, nearly two years later, “I got a call from two federal agents to tell me that there was a warrant out for my arrest in connection with the misrepresentations I made on the 9/11 loan.”
He turned himself in and pled guilty. “All I wanted to do was accept responsibility and pay my debt and move forward.”
In 2006 he went to prison for over a year.
Jeff was sent to a correctional institute in Pennsylvania, where he says there were “five stockbrokers, two former doctors and one former lawyer — that was me — and about 1,500 drug dealers.” (More on lessons he learned in prison below… wow!)
When Jeff got out of prison, his life was a mess. “I didn’t have a job. My family was in disarray.” He was still in recovery, though, and went to court-managed drug and alcohol counseling several times a week. A counselor advised him to begin re-establishing his reputation by doing volunteer work. That led to some paid positions.
In 2009 he decided to go to seminary, even though he’d been raised Jewish. He received a Master of Divinity degree from Union Theological Seminary and started working in churches.
He started Progressive Prison Ministries in 2014 to specifically provide emotional and spiritual support to white-collar criminals and their families. The group holds virtual meetings every Monday night, and everyone from ex-cons to people awaiting trial call in. “We give them hope and some guidance on how to move forward,” Jeff explains. While the program is “spiritually oriented,” it is non-denominational. “We serve people of all faiths or no faith whatsoever.”
The group includes former CEOs, captains of industry, a former local sheriff and a discredited ex-district attorney. Many of them share their stories on Jeff’s podcast, White Collar Week.
“This is hard work, Jane. This is like therapy on steroids.”
Time for their advice…
HOW TO SURVIVE PRISON
— If you’re going to prison, memorize important phone numbers or have them mailed to you inside. Nobody remembers phone numbers anymore.
— Tell visitors not to handle any cash ahead of a visit, because there may be drug residue on it.
“The single most important thing to know about going to prison is to show respect and be able to receive respect,” says Jeff Grant, who adds that respect is mostly demonstrated by “keeping your mouth shut.” People who ask a lot of questions are suspected of being rats.
Prison has a lot of rules which are not intuitive at first. “It’s like being on a plane and landing in Manchuria,” he says. “You can get off the plane, but you don’t speak the language, you don’t know the customs, you don’t know the culture, you don’t have the money.”“You don’t want to know how he acquired it.”
For example, on his third day in prison, Jeff went over to a weight stack to bench press. It was very early in the morning, and nobody was working out.
“Somebody came up to me and said, ‘Are you planning on using that equipment?’ And I said, ‘Yeah.’” The guy told Jeff, “When you’re done, come talk to me.” Jeff said he was so freaked out, he did one bench press before going back to talk to the guy, who suggested Jeff talk to his “cellie,” his cellmate.
When Jeff asked his “cellie” what the deal was, the cellmate told Jeff the man who spoke to him “owns” the weight equipment during that part of the day. “You don’t want to know how he acquired it,” the cellmate told him. “If you want to use that equipment during that time of day, you’ve got to pay him for it.”
Jeff asked why the guy didn’t just tell him that. “He doesn’t know you,” his cellmate said. “He doesn’t know if you’re a rat.” White-collar inmates are generally older and often white, as is Jeff, and that can make other inmates suspect them of being prison plants.
Jeff began to walk the track around the prison yard, 10 miles a day. “After about three months, a ‘shot caller’ came up,” he says, referring to the head of a gang. “He said to me, ‘I hear you can be trusted.’” Jeff knew by now not to speak. “So I just nodded my head, and he said, ‘All right, then.’”
The next day other inmates suddenly started talking to Jeff, the former lawyer, and asking for legal advice. He ended up helping many of them with divorces and bankruptcies.“You can’t trust anybody.”
Scott London paid a consultant a few hundred dollars to get advice before starting his prison sentence. “Turns out [the advice] was mostly wrong.”
Here’s what he learned on his own about prison.
“You can’t trust anybody, you can’t trust what people tell you, you have to look out for yourself.” Scott says there will be inmates who want to get you in trouble. At the same time, “Don’t treat people poorly.”
He says the first couple of weeks were a process of learning the rules, such as, “This thing is only for coffee. Don’t wash your hands in that sink.”
Then came the occasional challenges, “where somebody is exerting their influence.” Scott says you can react in one of three ways:
Cowering — “From that time on, they would kind of own you throughout your stay.”
Defiant — “You just go over the top and try and be aggressive with them.”
Something in-between — “Hold your ground and say, ‘I’m sorry, I didn’t mean any disrespect. I’m here to do my thing, you’re here doing your thing.’”
Scott chose the last strategy. “In the end, I made some reasonable friends there that I spent most of my time with.” Finding such people helped the time go by. “If you were just trying to be a loner, and you isolate yourself, it’s going to be very, very difficult to get through.”
AND AFTER PRISON?
There are “Fair Chance Employers” who are willing to hire someone with a criminal record to reduce recidivism rates, but Mike Neubig says they focus on blue-collar ex-felons, not people like him.
In California, the 2018 Fair Chance Act bans employers from doing a criminal background check until a conditional offer has been made. The offer can only be rescinded after “considering the nature and gravity of the criminal history, the time that has passed since the conviction, and the nature of the job you are seeking.”
It doesn’t take much to convince a company to rescind an offer to someone who previously committed fraud.
So Mike says he’s found value in volunteering with the youth ministry at his church, and with Jeff Grant’s Progressive Prison Ministries. “Find a support group,” he says. “Don’t be afraid to admit what you did… otherwise the shame will just kill you. It still does at times.”“Think about the people in your life.”
Scott London says white-collar ex-cons need to leverage the skills they have and reinvent themselves in a career different from the one they had.
He also has two pieces advice for staying out of trouble in the first place. First, don’t make critical work decisions when you’re vulnerable. “You might be going through a divorce, you might have financial issues.” This could put you in the wrong frame of mind to make moral and ethical choices.
Second, “If you are about to go over the line… think about the people in your life.” Those people will suffer greatly. “My son came home from school one day, and there was a news truck sitting outside, and he had no idea what was going on.” If Scott had that image in his mind before he broke the law, he says he wouldn’t have broken the law.“We have a right to a second life.”
Jeff Grant has done what seemed impossible and won back his law license. Even some of his old clients from 20 years ago have come back.
This gives him hope.
“We’re now hopefully being regarded not so much as castoffs anymore,” he says, “but more as people who’ve gone through some difficult challenges, albeit mostly by our own hand, and who have a right to recover, have a right to a second life.”
Jane Wells would love to hear what you think. Please feel free to email [email protected].
When lawyers through greed or hubris or desperation become white-collar criminals – sent to prison and disbarred – their stories often feel like car crashes. We gape at the wreckage of their lives and move on.
But what happens afterwards, once they’ve done their time? How do they pick up the pieces?
Jeffrey Grant found a path to redemption. Seventeen years after he pleaded guilty to fraudulently obtaining $247,000 through a 9/11 disaster relief loan from the U.S. Small Business Administration, the Appellate Division of the Supreme Court of the State of New York earlier this month reinstated his law license.
“I’m beyond excited, but I also take the responsibility very seriously,” he told me. “I’m really grateful for a second chance.”
His journey is extraordinary, from opioid-addicted real estate lawyer to federal prison inmate to seminary student to head of a criminal justice nonprofit. And now, at age 64, he has come full circle to practice law again.
But this time around, he intends to do it very differently.
A 1981 New York Law School grad, Grant, before everything fell apart, headed his own 20-employee firm, Jeffrey D. Grant & Associates, in Mamaroneck, New York, serving as outside general counsel to large real estate companies.
“I viewed life as a competition,” he said, describing himself as akin to “a paid assassin.”
“It was me against everyone else, or me and my client against everyone else.”
After a sports injury, he was prescribed the painkiller Demerol and over the course of a decade, he became addicted to prescription opioids.
When he couldn’t meet payroll for his firm, he borrowed money from client escrow accounts. With a New York state attorney grievance committee investigation pending, he surrendered his law license on July 28, 2002. That night, he attempted suicide by overdose, he told me.
He wound up in rehab, embracing recovery with three meetings a day. He’s been clean and sober ever since.
But his past caught up with him in 2004, when he learned there was a warrant for his arrest. “No one was more surprised than me,” Grant said. Once informed of the charges, though, it “all came rushing back.”
In the wake of the September 11, 2001 attacks, he had applied for federal financial aid and falsely claimed that his firm had an office in New York City. In reality, he merely had an arrangement to use a conference room on occasion in the city.
Did he somehow convince himself this qualified? I asked. “I was a lawyer who represented sophisticated businesspeople,” he said. “I knew better.”
“There’s no question drugs had a lot to do with it, but I can’t blame the drugs,” he continued. “I was desperate, clutching at anything I could.”
Grant served 14 months at a low security prison in White Deer, Pennsylvania – but it was a “real prison with bars,” he said, not one of the so-called Club Fed camps where white-collar offenders typically do their time.
As a “privileged kid from the suburbs,” he said, “I had to learn hard lessons there. But it was exactly what I needed to wipe the last smirk off my face.”
Released in 2007, he knew he wanted to use his experiences to help others. He’s Jewish, but a pastor he knew suggested he consider attending a seminary.
“I didn’t know what that meant,” Grant recalled. (His first reaction: Is that where you train to be a monk?) But he discovered that seminaries, at least the progressive ones, “are basically places where you learn about social justice and faith.”
In 2012, he earned a master of divinity degree from Union Theological Seminary in New York City. He’s been baptized, but he’s also still a Jew. “I’m a double-belonger,” he said.
Grant and his wife Lynn Springer went on to co-found Progressive Prison Ministries. Based in Greenwich, Connecticut, they say it’s the world’s first ministry focused on serving the white-collar justice community.
It includes a weekly white-collar online support group for people “who have a desire to take responsibility for our actions and the wreckage we caused, make amends, and move forward in new way of life centered on hope, care, compassion, tolerance and empathy.” More than 310 people around the country have participated, according to the group’s website.
From 2016 to 2019, Grant also served as the executive director of Family ReEntry, a criminal justice nonprofit with offices and programs in eight Connecticut cities.
Three years ago, he began the process of getting his law license back. The first step was taking the multi-state professional responsibility exam and completing CLE. He also submitted “about 12 inches of paperwork,” he said, including his personal story.
He wrote 14,000 words. “I wanted to tell them everything, the whole story, warts and all,” he said. “It didn’t make a difference to me if strategically it was the right thing to do.” He added, “I let go of the outcome.”
He had a hearing via videoconference last May. “I was scared,” Grant said, but he was surprised to find that the panel members questioning him were “kind.”
“They were thorough and probing, but they were not out to tank me. They were supportive,” he said. “It helped me remember the best parts of being a lawyer.”
On May 5, his license was officially reinstated, and he promptly launched GrantLaw PLLC. With an office on West 43rd Street in Manhattan, he’s offering his services as a private general counsel specializing in white-collar crisis management.
That might include helping a white-collar defendant interview defense lawyers and other specialized counsel, reviewing the lawyers’ work product and billing, and acting as a sounding board, all with the goal of achieving a better and more-cost-efficient outcome.
“Most white-collar defendants are very bright, who have a lot of professional experience and are highly educated,” Grant said. “They don’t realize they’re in trauma – and are making generally very bad decisions while in trauma.”
They need “someone who understands trauma,” he said, “and somebody to trust.”
Given his life experiences, it’s hard for me to imagine a lawyer more uniquely qualified.
Jenna Greene writes about legal business and culture, taking a broad look at trends in the profession, faces behind the cases, and quirky courtroom dramas. A longtime chronicler of the legal industry and high-profile litigation, she lives in Northern California. Reach Greene at [email protected].
Attorney advertising. Prior results do not guarantee a similar outcome.
When lawyers through greed or hubris or desperation become white-collar criminals – sent to prison and disbarred – their stories often feel like car crashes. We gape at the wreckage of their lives and move on.
But what happens afterwards, once they’ve done their time? How do they pick up the pieces?
Jeffrey Grant found a path to redemption. Seventeen years after he pleaded guilty to fraudulently obtaining $247,000 through a 9/11 disaster relief loan from the U.S. Small Business Administration, the Appellate Division of the Supreme Court of the State of New York earlier this month reinstated his law license.
“I’m beyond excited, but I also take the responsibility very seriously,” he told me. “I’m really grateful for a second chance.”
His journey is extraordinary, from opioid-addicted real estate lawyer to federal prison inmate to seminary student to head of a criminal justice nonprofit. And now, at age 64, he has come full circle to practice law again.
But this time around, he intends to do it very differently.
A 1981 New York Law School grad, Grant, before everything fell apart, headed his own 20-employee firm, Jeffrey D. Grant & Associates, in Mamaroneck, New York, serving as outside general counsel to large real estate companies.
“I viewed life as a competition,” he said, describing himself as akin to “a paid assassin.”
“It was me against everyone else, or me and my client against everyone else.”
After a sports injury, he was prescribed the painkiller Demerol and over the course of a decade, he became addicted to prescription opioids.
When he couldn’t meet payroll for his firm, he borrowed money from client escrow accounts. With a New York state attorney grievance committee investigation pending, he surrendered his law license on July 28, 2002. That night, he attempted suicide by overdose, he told me.
He wound up in rehab, embracing recovery with three meetings a day. He’s been clean and sober ever since.
But his past caught up with him in 2004, when he learned there was a warrant for his arrest. “No one was more surprised than me,” Grant said. Once informed of the charges, though, it “all came rushing back.”
In the wake of the September 11, 2001 attacks, he had applied for federal financial aid and falsely claimed that his firm had an office in New York City. In reality, he merely had an arrangement to use a conference room on occasion in the city.
Did he somehow convince himself this qualified? I asked. “I was a lawyer who represented sophisticated businesspeople,” he said. “I knew better.”
“There’s no question drugs had a lot to do with it, but I can’t blame the drugs,” he continued. “I was desperate, clutching at anything I could.”
Grant served 14 months at a low security prison in White Deer, Pennsylvania – but it was a “real prison with bars,” he said, not one of the so-called Club Fed camps where white-collar offenders typically do their time.
As a “privileged kid from the suburbs,” he said, “I had to learn hard lessons there. But it was exactly what I needed to wipe the last smirk off my face.”
Released in 2007, he knew he wanted to use his experiences to help others. He’s Jewish, but a pastor he knew suggested he consider attending a seminary.
“I didn’t know what that meant,” Grant recalled. (His first reaction: Is that where you train to be a monk?) But he discovered that seminaries, at least the progressive ones, “are basically places where you learn about social justice and faith.”
In 2012, he earned a master of divinity degree from Union Theological Seminary in New York City. He’s been baptized, but he’s also still a Jew. “I’m a double-belonger,” he said.
Grant and his wife Lynn Springer went on to co-found Progressive Prison Ministries. Based in Greenwich, Connecticut, they say it’s the world’s first ministry focused on serving the white-collar justice community.
It includes a weekly white-collar online support group for people “who have a desire to take responsibility for our actions and the wreckage we caused, make amends, and move forward in new way of life centered on hope, care, compassion, tolerance and empathy.” More than 310 people around the country have participated, according to the group’s website.
From 2016 to 2019, Grant also served as the executive director of Family ReEntry, a criminal justice nonprofit with offices and programs in eight Connecticut cities.
Three years ago, he began the process of getting his law license back. The first step was taking the multi-state professional responsibility exam and completing CLE. He also submitted “about 12 inches of paperwork,” he said, including his personal story.
He wrote 14,000 words. “I wanted to tell them everything, the whole story, warts and all,” he said. “It didn’t make a difference to me if strategically it was the right thing to do.” He added, “I let go of the outcome.”
He had a hearing via videoconference last May. “I was scared,” Grant said, but he was surprised to find that the panel members questioning him were “kind.”
“They were thorough and probing, but they were not out to tank me. They were supportive,” he said. “It helped me remember the best parts of being a lawyer.”
On May 5, his license was officially reinstated, and he promptly launched GrantLaw PLLC. With an office on West 43rd Street in Manhattan, he’s offering his services as a private general counsel specializing in white-collar crisis management.
That might include helping a white-collar defendant interview defense lawyers and other specialized counsel, reviewing the lawyers’ work product and billing, and acting as a sounding board, all with the goal of achieving a better and more-cost-efficient outcome.
“Most white-collar defendants are very bright, who have a lot of professional experience and are highly educated,” Grant said. “They don’t realize they’re in trauma – and are making generally very bad decisions while in trauma.”
They need “someone who understands trauma,” he said, “and somebody to trust.”
Given his life experiences, it’s hard for me to imagine a lawyer more uniquely qualified.
Jenna Greene writes about legal business and culture, taking a broad look at trends in the profession, faces behind the cases, and quirky courtroom dramas. A longtime chronicler of the legal industry and high-profile litigation, she lives in Northern California. Reach Greene at [email protected].
Attorney advertising. Prior results do not guarantee a similar outcome.
“Ugly confessions from beautiful people… It’s like a car wash for our shame and secrets.”– Nadia Bolz-Weber
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Huge thanks to Nadia Bolz-Weber for having me on her podcast, The Confessional. We got into some deeply personal stuff, and Nadia’s blessing at the end is the most beautiful and poignant prayer I’ve ever heard – it brought Lynn and me to tears. I am so deeply grateful. – Jeff
Link to the podcast on The Confessional with Nadia Bolz-Weberhere.
Listen on PRX:
Listen on Apple Podcasts:
Show Notes:
Co-Founder of Progressive Prison Ministries
“I was dressed up looking the part, but deep inside, I was just vacant. I just was not someone I was proud of anymore.” – Jeff Grant
She writes and speaks about personal failings, recovery, grace, faith, and really whatever the hell else she wants to. She always sits in the corner with the other weirdoes.
Transcript:
Nadia Bolz-Weber: My name is Nadia Bolz-Weber and you have stepped into The Confessional. Joining me today is Reverend Jeff Grant. I’m delighted to have him with me in The Confessional. I can’t wait to hear your story. Welcome, Jeff.
Reverend Jeff Grant: Thanks for having me here, Nadia.
NBW: Set the scene for me, tell me what was going on in your life that led up to the moment you want to describe.
JG: I think the word that comes to mind is grandiosity. My family and I went on vacation, probably five times a year. It was always the same. There was no backpacking or skiing for us, we went shopping. We would fly out to Los Angeles and stay in the Chateau Marmont and to rub elbows with the stars that were staying there. I remember, once we were at this store that’s pretty well known. We were just spending a ton of money. and at the time, I was probably high on three or four tabs of Demerol.
The young women who worked there were just paying me with scotch. My ex wife and my kids were just picking out whatever they wanted and they just piled it up on my lap. I fell asleep in the chair and when I woke up from passing out, the clothes on my lap were over the top of my head. I was just a prop. I pulled out my black American Express card because that’s what I thought people were supposed to do, and paid for everything. We left with shopping bags worth of clothes, This was our life. There was never a day that there weren’t shopping bags and new acquisitions. It was a sickness. It was something that we took pride in, in this sick way.
NBW: Were you raised in a wealthy family, or was there a novelty to it for you?
JG: We were raised in a Jewish ghetto, on Long Island. This was the swinging ’50s, and swinging ’60s and my parents were into all kinds of crazy stuff that people were into back then.
Mostly what they were into was ignoring their children. I lived in a neighborhood of parents that were absent. We raised ourselves and we did a pretty bad job of it in a lot of ways. We didn’t really grow up with any character or ethics. We were alone, so we created rules, and we learned rules, and we developed this arrogance that didn’t serve us, certainly didn’t serve me later in life. This contempt for authority was pervasive all through my childhood and then when I went to school, and ultimately when I became a lawyer
NBW: What was your law practice like?
I had a good practice, successful.. I had about 20 people working for me. and I owned a bistro that was in the neighborhood.
NBW: What kind?
JG: It was a new American restaurant, a bistro, it had 36 seats.
and the reason I opened the restaurant was to meet clients, and I met them.
I was a backslapping, good old boy kind of guy, who people liked, I think, but everybody likes to know the owner of a restaurant. I would go over to their table and schmooze with them.
And I became the general counsel to some major real estate companies. and the money was flowing and the spending was flowing.
NBW: When I hear you describing being this successful owning businesses, being an important fixture in the community, the money’s flowing, the spending’s flowing. That sounds like you were living the dream , but what was the reality?
JG: I think it was living the dream but the problem is that it had its dark side and that was the anxiety of having to always have more and to grow way beyond my comfort zone. My payroll was about $125,000 a month, which means I had to make $1.5 million a year just to pay the over-head. The weight of that was just crushing. I thought I could solve problems by becoming bigger. It never even dawned on me that the way I could solve personal problems or business problems was to become smaller, to simplify life.
The more things ramped up and the more complicated they became, the more I turned to drugs.
I had doctor friends who kept prescribing and I kept manipulating them into it.
NBW: Can you describe that manipulation?
JG: Sure. Mostly, it was because I was the lawyer in this group of people and I held all their secrets. Everybody wanted my time, but not to pay for it if they could avoid it. What I did was I traded my time for drugs. I lived this double life where I was a great dad and family man and I own restaurants and real estate and parts of health clubs and things like that. Every night, I was stoned out of my mind.
I had a client who had broken his neck and so he had an unlimited supply of Oxycontin. He walked into my office one day, I guess he knew that I was taking prescription opioids at the time. He just opened up his hand and he dropped the pile of Oxycontin on my desk.
He said, “I think you might like this.” Once I started the Oxycontin, there was no turning back. In fact, I couldn’t even go to work. I spent afternoons sitting in his house, watching the golf channel with him.
NBW: So What happened?
JG: What happened was I stopped being able to show up to work regularly. I was just too out of it, I was too stoned.
The day came when we ran out of money in the law firm.
You just can’t not show up at your business for a year or so and expect it to be healthy
my office manager had come into my office and told me that we weren’t going to be able to make payroll. That I had to come up with some money. I remember just feeling desperate. What was I going to do?
I said to her, “How much money is in the escrow account?” She looked at me like, “What are you doing?” I said, “We’re going to borrow some money from the escrow account.”
At any given time, we had several million dollars in escrow sitting there that was client’s money, that was meant to be transferred to clients for the sales of their houses, or sales of their building, or sales of their businesses.
I had no money in my operating account and to transfer the money from the escrow account to the operating account was just two pushes of a button on a computer. I thought that I would borrow it and pay it right back, which is I guess, the great lie of everybody who gets involved in these things.
She checked me and she said, “Are you sure this is what you want to do?” I said, “Yes,” and I felt nauseated. I knew that it was wrong but on some level underneath I also knew that it was absolute and utter destruction. And that I didn’t have the character to do what really needed to get done.
I could’ve called my banker, that would’ve been sane. I could’ve called a friend,
I was just not able to do it because I was just so full of shame. instead what I did was I invaded the client escrow account and I took my client’s money. `
NBW: What did that voice of shame– What was it saying?
JG: It was telling me that I was that fat kid from first grade who got picked on. I was the kid who would sit in my room and cry when my parents were screaming at each other.
There I was all alone. There was nothing I had. I had an empty well. I had nothing in reserve. Nothing.
NBW: You made this choice to take money out of the escrow account … and it made you sick to do it, but then did it keep feeling that way every other time you did it?
JG: I think the answer to that is yes, but I became increasingly numb. Less guilty, but more shamed, was feeling shame in everything. I was dressed up looking the part, but deep inside, I was just vacant. I just was not someone I was proud of anymore. The reasons I had become a lawyer, the initial goal to help people, I wasn’t helping anyone anymore. I was just trying to make enough money to survive.
It wasn’t long after that, that there was an investigation into my finances by the grievance committee of the bar…and we fought it for over two years.
Once the investigation started and I was compounding the lying that were depositions and I was lying through the depositions, because what choice did I have? I was living a lie and I probably believed the lie in a lot of ways
During those two years was 9/11. That really threw me for a loop. It’s like it is right now in COVID. The world was spinning out of control. There were advertisements on TV and on the radio for businesses that were in economic distress to borrow money from the Small Business Administration, just like there are now. I applied for an SBA loan but I lied on the application and said I had an office about a block from ground zero.
They lent me the money, $247,000 but it didn’t do anything to save my firm because my firm was heading down.
I took most of the money and I repaid personal credit cards that I had run up trying to save the business. That was money laundering. That was a violation of the terms of the loan. I think a lot of people are probably doing that right now. The lesson I learned was that you can’t save your business and your lifestyle at the time.
One day in July of 2002, I couldn’t handle it anymore. The news was just not good in terms of trying to save my business. I called up my ethics attorney and told him to resign my law license for me. I’ve got one last prescription from a doctor friend. AndI went home that night. After my wife and kids went to bed, I took 40 tabs of Demerol and tried to kill myself.
NBW: It’s amazing, you’re alive. It’s astounding.
JG: It didn’t kill me—
I wound up going through detox and then seven weeks in rehab.
When I came out of rehab, I went to my first recovery meeting. That was eighteen and a half years ago. After 9,000 meetings, I’ve never touched another drug or drink since.
I was sober for about 20 months, and I was going to three meetings a day to recover. I got a phone call from a federal agent, who told me that there was a warrant out for my arrest in connection with the misrepresentations I’d made on that loan. I knew that I was cornered.
Two weeks later, I appeared at the US courthouse in Downtown Manhattan and turned myself into the US marshals. Downtown Manhattan then was still like a war zone, post 9/11. There were checkpoints and barricades and military outside of buildings with machine guns. I felt like the biggest criminal in the world. I knew that I had taken advantage of a national emergency and had profited from it by borrowing this money.
NBW: Jeff, it strikes me that at the beginning you talked about how it never dawned on you that you could solve your problems by getting smaller, or asking for help – that like, the grandiosity you inhabited in this life you built drove you to keep going in the same direction that was destroying you.
But you also started out by telling me about your wife and kids – what happened there?
JG: My wife had had it with me already. When the time came that I got arrested, I guess that was the last straw. She threw me out. Any money I had, I dedicated to paying for her and my kids’ rent and overhead. I couch-surfed for two years waiting to go to prison.
NBW: You went from high-end retail vacation, having all the luxury goods piled up and paying for them, to you covering their basic expenses and sleeping on people’s sofas.
JG: Yes. That was pretty much the case right up to when I went to prison in 2006.
NBW: Wow. Tell me about going to prison.
JG: On Easter Sunday of 2006, I reported to Allenwood low-security correctional institution in White Deer, Pennsylvania.
On that compound of 1,500 men. There were five former stockbrokers. There was one former lawyer that was me and there were two former doctors and basically 1,500 drug dealers. For the next 13 and a half months, I learned how to navigate life in a prison of people who– the type of person I had never really met in my life.
I learned incredible life lessons while I was in prison about respect and dignity and humility and character. I met some of the most fascinating, interesting, intelligent people I’d ever met in my life.
NBW: You know what just kind of dawns on me is when you were describing your childhood, you were like, “We had to parent ourselves and we weren’t good at it. There was no one there to teach us about character and responsibility.” You literally just described that you finally learned those things from drug dealers in prison.
JG: Yes. I’m getting the chills. You just telling me that, but that’s true. I knew nothing about how to treat other people. I knew nothing about how to treat myself. When I came out of prison I was different. My motivations were different, the things I cared about were different, I was broken, I was softer, I was gentler, I started to volunteer.
I volunteered in drug rehabs and in residential criminal justice organizations until the day came when I didn’t really know what I was going to do and I went to the pastor of the church that I had been going to and I tried to describe to him that I want to live a life of service, but I don’t know what that means. He said to me I think you should consider going to seminary.
NBW: It’s a sucker punch.
JG: Yes. I had no idea what that meant.
NBW: That’s probably the only reason you agreed to go.
JG: I thought a seminary was where monks walked around in robes.
NBW: Sure.
JG: I didn’t know. He explained to me that a progressive seminary was really a place to learn about social justice. I applied to Union Theological Seminary in New York City.
It was the first time I’d ever told my story anywhere. I had to write it in my application
NBW: What’d that feel like?
JG: It was horrifying. It was the most frightening thing I could imagine. It probably felt more frightening than going to prison because I had to tell the truth.
NBW: Yikes
JG: I was as surprised as I could be when I got the letter in the mail that I was accepted to seminary and it wasn’t easy.
It was also a time when all the students were involved in Occupy Wall Street, and they were down fighting against the one-percenters and I had been a one-percenter., They didn’t know what to make of me, but I learned about the underground economy, and I learned about showing up for people because it was the right thing to do not because they could afford my services, for example.
NBW: Can you tell me who and what did you harm through the crimes that you committed?
JG: It took me probably 10 years or more to recognize that I hurt anybody. It was only when working with other men who had been through similar circumstances and counseling them that I was able to talk to them about the wreckage that they had caused and then finally recognize in me that I did that too. That I’d hurt my ex wife, I hurt my children, I hurt my community, I hurt all the people who were dependent upon me, I hurt my clients. I hurt the fabric of the profession that I made my living in that I hurt people’s ability to trust lawyers.
NBW: Jeff, can you name what it is that prevented you from seeing that? You just had a long list there, what kept you from seeing the fact that you had caused that kind of harm?
JG: I think that primarily, it was self pity, and also, it was the only way I knew how to cope. I had to compartmentalize. It was unbearable to look backwards.
NBW: It’s amazing to me how often our coping mechanisms involve some sort of mental gymnastics we have to perform in order to justify our behavior – where we basically just cant let in competing information about ourselves
JG: Later on, I asked friends, “You must’ve seen I was crazy, that I was acting crazy, that I was on drugs. Why didn’t you ever say anything?” They all said, “We did say things. We all told you that you needed help. You just couldn’t hear us.”
NBW: How many of us have those people in our friends and family groups, who we see them spinning out and we’re totally powerless. We do the brave thing of confronting them or saying something or going like, “This isn’t okay, and you need help.” They have a million justifications for why they’re actually fine and you’re wrong.
JG: Exactly.
NBW: The guilt that so many people carry because they can’t help this person in their life.
NBW: Jeff, Before we go, I’d love to hear about the work you do now.
JG: I met a woman in recovery who later became my wife and We decided to start a ministry to support white collar criminals and their families. No one had ever done it. There’s so much stigma and shame and schadenfreude for these people who – their families have been destroyed and they can’t get jobs and they’re facing prison sentences or they’ve come home from prison.
JG: And If I sit down with someone who has been prosecuted for a white collar crime and we meet in a diner, for example, and we sit down, and he doesn’t know that I’m gauging him from the minute that we shake hands.If he’s wearing a $50,000 watch, I already know that that’s what he’s using to hide behind. There is so much shame there. There’s so much that he can’t talk about. There he is, with his arms folded in front of him and using that watch as a shield.
NBW: That’s extraordinary. I love that this is the work that you do. It’s just incredible.. where are you at with self-forgiveness?
JG: I would love to be able to tell you that I’ve forgiven myself but it’s so different than feeling like I’ve been forgiven. Because in my heart, I really do feel like I’ve been forgiven. Whether that’s Jesus or God or just the universe has opened up again so that it’s allowed me to feel like a whole person maybe for the first time in my life. I honestly do feel forgiven. Do I forgive myself? Maybe on a good day. It’s fleeting but I do get to experience it every once in a while.
NBW: I guess sometimes for myself when I don’t feel that self-forgiveness, I just have to rely on redemption. I feel redeemed. A lot of my mistakes or my f ailings have gone through some fucking spiritual dishwasher and are to be useful for other people. It wasn’t all for naught. The end sum is more than just the harm that was caused, that there has been good that’s come out of it, and sometimes I just have to lean on that.
Well, I’m really grateful for you sharing your story and I just absolutely love the work that you do in the world. It just feels subversive in the most spiritual sense of the word. You know? [chuckling]
JG: Yeah.
NBW: Well, keep doing it, friend. Glad you’re out in the world.
On Sun., May 2, 2021, my friend and Union Theological Seminary classmate Rev. Angela Wells-Bean discussed our ministry in her sermon at Naples United Christ of Church, Naples, Florida. Thank you Angela for the honor of being a part of your worship service.
It’s the Isolation that Destroys Us. The Solution is in Community.
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Podcast Ep. 30, Guest: Barry Bekkedam Sets the Record Straight
Today on the podcast we have Barry Bekkedam. This is Barry’s first interview since returning from Federal prison last year.
What I like most about Barry was his openness and candor as he painstakingly takes us through his remarkable story from immigrant, to the Villanova basketball team (he’s 6’10” tall!), to real estate investor, to multi-billion dollar Main Line investment manager – and then to his problems when some of his clients lost money in the Rothstein Ponzi scheme and then as former Chairman of a bank accused of TARP fraud.
Barry took his case to trial and was partially vindicated, but ultimately was sentenced to serve 11 months in a Federal prison camp. Barry’s is an incredible story of resilience through over a decade of issues.
So, coming up, Barry Bekkedam sets the record straight. On White Collar Week. I hope you will join us. – Jeff
Listen on Apple Podcasts:
Listen on Spotify:
Listen on SoundCloud:
Watch on YouTube:
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If you have a friend, family member, colleague or client with a white collar justice issue, please forward this post; they can reach us anytime – day or night! Our contact info:http://prisonist.org/contact-us.
You can find all episodes of our podcast “White Collar Week with Jeff Grant” on our websiteprisonist.org,our Facebook page, Podbean, YouTube (video), SoundCloud, Apple Podcasts, Spotify, LinkedIn, Instagram and Twitter.
Entrepreneur’s #4 Most Viewed Article of 2020: I Went to Prison for SBA Loan Fraud – 7 Things to Know When Taking COVID-19 Relief Money: by Jeff Grant, J.D., M.Div.. Link to article here.
The Philadelphia Inquirer: Steal Money from the Feds? First, Meet Jeff Grant, an Ex-Con who Committed Loan Fraud, by Erin Arvedlund: Link to article here.
Clara CFO Smolinski YouTube: Thinking About PPP Fraud?: Hannah Smolinski Interviews Jeff Grant About Going to Prison for SBA Loan Fraud. Sponsored by Upside Financial. Link to article and YouTube video here.
CFO Dive: After Serving Time, Fraudster Cautions Against PPP, Other Emergency Loans, by Robert Freedman. Link to article here.
Fraud Stories Podcast with Mark Lurie: SBA/PPP Loan Fraud with Guest: Jeff Grant. Link to podcast here.
Forbes: As Law Enforcement Pursues SBA Loan Fraud, Jeff Grant Talks Redemption, by Kelly Phillips Erb. Link to article here.
Taxgirl Podcast: Jeff Grant talks Desperation and Loans in a Time of Crisis with Kelly Phillips Erb on Her Podcast. Link to article and podcast here.
Business Talk with Jim Campbell: Jeff Grant Talks with Jim About Going to Prison for SBA Loan Fraud and What to Know When Taking Coronavirus Relief Money, Biz Talk Radio Network, Broadcast from 1490 AM WGCH Greenwich, CT. Listen on YouTube here.
Babz Rawls Ivy Show: Babz Rawls Ivy & Jeff Grant Talk SBA / PPP Loan Fraud and 7 Things to Know Before You Take Coronavirus Relief Money, WNHH 103.5 FM New Haven. Watch on YouTube here.
White Collar Week with Jeff Grant, Podcast Ep. 21: All Things SBA, PPP & EIDL, with Guest: Hannah Smolinski, CPA, Virtual CFO: Link here.
White Collar Week with Jeff Grant, Podcast Episode 09: Small Business Edition, with Guest Kelly Phillips Erb. Link here.
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Louis Reed/Babz Rawls Ivy PSA:
Some very kind words from my dear friends Louis L. Reed and Babz Rawls Ivy in this brief PSA. Thank you Louis and Babz! – Jeff
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All Episodes:
Link here to Podcast Ep. 30, Guests: Barry Bekkedam Sets the Record Straight
Linkhereto Podcast Ep. 29, Guests: The Entrepreneurs, David Israel & Spencer Oberg
Link here to Podcast Ep. 28, Guests: The Investigators, Kelly Paxton & Brian Willingham
Link here to Podcast Ep. 27, The Addicted Lawyer, Guest: Brian Cuban
Link here to Podcast Ep. 26, Oppression & Identity, Guests: Jaco & Leslie Theron
Linkhereto Podcast Ep. 25, Ex-Philadelphia D.A., Seth Williams, Part Two
Link here to Podcast Ep. 24, Ex-Philadelphia D.A., Seth Williams, Part One
Link here to Podcast Ep. 23, The Vanishing Trial, Robert Katzberg
Link here to Podcast Ep. 22: The Goddess, with Guest: Babz Rawls Ivy
Link here to Podcast Ep. 21: All Things SBA, PPP & EIDL, with Guest: Hannah Smolinski, CPA, Virtual CFO
Link here to Podcast Ep. 20: Reinventing Yourself After Prison, with Guests: Glenn E. Martin & Richard Bronson
Link here to Podcast Ep. 19: Insider Trading Charges Dismissed, with Guest: Richard Lee
Link here to Podcast Ep. 18: Is Your Life a Movie? The Producers, with Guests: Lydia B. Smith, Bethany Jones & Will Nix
Link here to Podcast Ep. 17: #TruthHeals, Systemic Abuse & Institutional Reform with Guest: Vanessa Osage, feat. Guest Co-Host Chloe Coppola
Link here to Podcast Ep. 16: Politicians, Prison & Penitence, with Guest: Bridgeport, CT Mayor Joseph Ganim
Link here to Podcast Ep. 15: A Brave Talk About Suicide, with Guests Bob Flanagan, Elizabeth Kelley, & Meredith Atwood
Link here to Podcast Ep. 14: Recovery & Neighborhood, with Guest: TNP’s Tom Scott
Linkhereto Podcast Ep. 13: Everything but Bridgegate, with Guest: Bill Baroni
Linkhereto Podcast Ep. 12: The Truth Tellers, with Guests: Holli Coulman & Larry Levine
Linkhereto Podcast Ep. 11: Blank Canvas, with Guest: Craig Stanland
Linkhereto Podcast Ep. 10: The Ministers, with Guests: Father Joe Ciccone & Father Rix Thorsell
Linkhereto Podcast Ep. 09: Small Business Edition, with Guest: Taxgirl Kelly Phillips Erb
Linkhereto Podcast Ep. 08: The Academics, with Guests: Cathryn Lavery, Jessica Henry, Jay Kennedy & Erin Harbinson
Linkhereto Podcast Ep. 07: White Collar Wives. with Guests: Lynn Springer, Cassie Monaco & Julie Bennett. Special Guest: Skylar Cluett
Linkhereto Podcast Ep. 06: Madoff Talks, with Guest: Jim Campbell
Linkhereto Podcast Ep. 05: Trauma and Healing when Mom goes to Prison, with Guests: Jacqueline Polverari and Her Daughters, Alexa & Maria
Link here to Podcast Ep. 04: One-on-One with Tipper X, with Guest: Tom Hardin
Linkhereto Podcast Ep. 03: Compassionate Lawyering, with Guests: Chris Poulos, Corey Brinson, Bob Herbst & George Hritz
Linkhereto Podcast Ep. 02: Substance Abuse & Recovery During COVID-19, with Guests: Trevor Shevin & Joshua Cagney
Linkhereto Podcast Ep. 01: An Evening with Our White Collar Support Group, with Guests: 16 Members of Our White Collar Support Group
Linkhereto Podcast Ep. 00: White Collar Week with Jeff Grant: What is White Collar Week?
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Jeff Grant
What is the White Collar Justice Community?
Welcome to White Collar Week with Jeff Grant, a podcast serving the white collar justice community. It’s the isolation that destroys us. The solution is in community.
If you are interested in this podcast, then you are probably already a member of the white collar justice community – even if you don’t quite know it yet. Our community is certainly made up of people being prosecuted, or who have already been prosecuted, for white collar crimes. But it is also made up of the spouses, children and families of those prosecuted for white collar crimes – these are the first victims of white collar crime. And the community also consists of the other victims, both direct and indirect, and those in the wider white collar ecosystem like friends, colleagues, prosecutors, defense attorneys, judges, law enforcement, academics, researchers. Investigators, mitigation experts, corrections officers, parole & probation officers, reentry professionals, mental health care professionals, drug and alcohol counselors – and ministers, chaplains and advocates for criminal and social justice reform. The list goes on and on…
Our mission is to introduce you to other members of the white collar justice community, to hear their very personal stories, and hopefully gain a broader perspective of what this is really all about. Maybe this will inspire some deeper thoughts and introspection? Maybe it will inspire some empathy and compassion for people you might otherwise resent or dismiss? And maybe it will help lift us all out of our own isolation and into community, so we can learn to live again in the sunshine of the spirit.
Along the way, I’ll share with you some of the things I’ve learned in my own journey from successful lawyer, to prescription opioid addict, white collar crime, suicide attempt, disbarment, destruction of my marriage, and the almost 14 months I served in a Federal prison. And also my recovery, love story I share with my wife Lynn Springer, after prison earning a Master of Divinity from Union Theological Seminary in NYC, pastoring in an inner city church in Bridgeport CT, and then co-founding with Lynn in Greenwich CT, Progressive Prison Ministries, the world’s first ministry serving the white collar justice community. It’s been quite a ride, but I firmly believe that the best is yet to come.
So I invite you to come along with me as we experience something new, and bold, and different – a podcast that serves the entire white collar justice community. I hope you will join me.
It’s the Isolation that Destroys Us. The Solution is in Community.
Progressive Prison Ministries, Inc. is the world’s first ministry supporting the white collar justice community. Founded by husband and wife,Jeff Grantand Lynn Springerin Greenwich CT in 2012, we incorporated as a nonprofit in Connecticut in 2014, and received 501(c)(3) status in 2015. Jeff has over three decades of experience in crisis management, business, law (former), reentry, recovery (clean & sober 17+ years), and executive and religious leadership. As Jeff was incarcerated for a white-collar crime he committed in 2001, he and Lynn have a first-hand perspective on the trials and tribulations that white-collar families have to endure as they navigate the criminal justice system and life beyond.
Progressive Prison Ministries, Inc. is nonsectarian, serving those of all faiths, or no faith whatsoever. To date we have helped over three hundred fifty (350) individuals, and their families, to accept responsibility for their actions and to acknowledge the pain they have caused to others. In accordance with our commitment to restorative justice, we counsel our members to make amends as a first step in changing their lives and moving towards a new spiritual way of living centered on hope, care, compassion, tolerance, empathy and service to others. Our team has grown to over ten people, most with advanced degrees, all of whom are currently volunteering their time and resources.
Progressive Prison Ministries’ goal is to provide spiritual solutions and emotional support to those who are feeling alone, isolated, and hopeless. We have found that these individuals are suffering from a void but are stuck, and don’t know what to do about it. Our objective is to help them find a path to a healthy, spirit-filled place on the other side of what may seem like insurmountable problems. Many of those we counsel are in a place where their previous lives have come to an end due to their transgressions. In many cases their legal problems have led to divorce, estrangement from their children, families, friends and support communities, and loss of a career. The toll this takes on individuals and families is emotionally devastating. White-collar crimes are often precipitated by other issues in the offenders’ lives such as alcohol or drug abuse, and/or a physical or mental illness that lead to financial issues that overwhelms their ability to be present for themselves and their families and cause poor decision making. We recognize that life often presents us with such circumstances, sometimes which lead us to make mistakes in violation of the law.
All conversations and communications between our ordained ministry, and licensed clinical relationships, and those we serve fall under state privilege laws. This is one reason that attorneys often allow and encourage their clients to maintain relationships with us while in active prosecution or litigation situations.
If you, a friend, family member, colleague or client are suffering from a white collar criminal justice issue or are experiencing some other traumatic or life-altering event, and would like to find a path to a healthy, spirit-filled place on the other side of what seems like insurmountable problems, please contact us to schedule an initial call or appointment.
Copyright 2021, All Rights Reserved, Progressive Prison Ministries, Inc.,
We’ve never before reprinted a Department of Justice press release. This one is worth reprinting in full. – Jeff
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Friday, March 26, 2021
Historic level of enforcement action during national health emergency continues
The Department of Justice announced an update today on criminal and civil enforcement efforts to combat COVID-19 related fraud, including schemes targeting the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program and Unemployment Insurance (UI) programs.
As of today, the Department of Justice has publicly charged 474 defendants with criminal offenses based on fraud schemes connected to the COVID-19 pandemic. These cases involve attempts to obtain over $569 million from the U.S. government and unsuspecting individuals through fraud and have been brought in 56 federal districts around the country. These cases reflect a degree of reach, coordination, and expertise that is critical for enforcement efforts against COVID-19 related fraud to have a meaningful impact and is also emblematic of the Justice Department’s response to criminal wrongdoing.
“The Department of Justice has led an historic enforcement initiative to detect and disrupt COVID-19 related fraud schemes,” said Attorney General Merrick B. Garland. “The impact of the department’s work to date sends a clear and unmistakable message to those who would exploit a national emergency to steal taxpayer-funded resources from vulnerable individuals and small businesses. We are committed to protecting the American people and the integrity of the critical lifelines provided for them by Congress, and we will continue to respond to this challenge.”
“To anyone thinking of using the global pandemic as an opportunity to scam and steal from hardworking Americans, my advice is simple – don’t,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “No matter where you are or who you are, we will find you and prosecute you to the fullest extent of the law.”
“We will not allow American citizens or the critical benefits programs that have been created to assist them to be preyed upon by those seeking to take advantage of this national emergency,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We are proud to work with our law enforcement partners to hold wrongdoers accountable and to safeguard taxpayer funds.”
In March 2020, Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect Americans from fraud related to the COVID-19 pandemic, the Department of Justice immediately stood up multiple efforts dedicated to identifying, investigating, and prosecuting such fraud. Leveraging data analysis capabilities and partnerships developed through its vast experience combatting economic crime and fraud on government programs, the Justice Department’s response to COVID-19 related fraud serves as a model for proactive, high-impact white-collar enforcement, and demonstrates our agility in responding to new and emerging threats. This rapid and nationwide response enabled the Justice Department to quickly ensure accountability for wrongdoing amid a national crisis and sent a forceful message of deterrence during an ongoing crisis. The multifaceted and multi-district approach to enforcement during this national health emergency continues and is expected to yield numerous additional criminal and civil enforcement actions in the coming months.
On criminal matters, the Justice Department’s efforts to combat COVID-19 related fraud schemes have proceeded on numerous fronts, including:
Paycheck Protection Program (PPP) fraud: Prominent among the department’s efforts have been cases brought by the Criminal Division’s Fraud Section involving at least 120 defendants charged with PPP fraud. The cases involve a range of conduct, from individual business owners who have inflated their payroll expenses to obtain larger loans than they otherwise would have qualified for, to serial fraudsters who revived dormant corporations and purchased shell companies with no actual operations to apply for multiple loans falsely stating they had significant payroll, to organized criminal networks submitting identical loan applications and supporting documents under the names of different companies. Most charged defendants have misappropriated loan proceeds for prohibited purposes, such as the purchase of houses, cars, jewelry, and other luxury items. In one case, U.S. v. Dinesh Sah, in the Northern District of Texas, the defendant applied for 15 different PPP loans to eight different lenders, using 11 different companies, seeking a total of $24.8 million. The defendant obtained approximately $17.3 million and used the proceeds to purchase multiple homes, jewelry, and luxury vehicles. In another case, U.S. v. Richard Ayvazyan, et al., in the Central District of California, eight defendants applied for 142 PPP and EIDL loans seeking over $21 million using stolen and fictitious identities and sham companies, and laundered the proceeds through a web of bank accounts to purchase real estate, securities, and jewelry.
Economic Injury Disaster Loans (EIDL) fraud: The department has also focused on fraud against the EIDL program, which was designed to provide loans to small businesses, agricultural and non-profit entities. Fraudsters have targeted the program by applying for EIDL advances and loans on behalf of ineligible newly-created, shell, or non-existent businesses, and diverting the funds for illegal purposes. The department has responded, primarily through the efforts of the U.S. Attorney’s Office for the District of Colorado and their partners at the U.S. Secret Service, acting swiftly to seize loan proceeds from fraudulent applications, with $580 million seized to date and seizures ongoing. The EIDL Fraud Task Force in Colorado, comprised of personnel from five federal law enforcement agencies and federal prosecutors, is investigating a broad swath of allegedly fraudulently loans and their applicants. It is working to identify individual wrongdoers and networks of fraudsters appropriate for prosecution.
Unemployment Insurance (UI) fraud: Due to the COVID-19 pandemic, more than $860 billion in federal funds has been appropriated for UI benefits through September 2021. Early investigation and analysis indicate that international organized criminal groups have targeted these funds by using stolen identities to file for UI benefits. Domestic fraudsters, ranging from identity thieves to prison inmates, have also committed UI fraud. In response, the department established the National Unemployment Insurance Fraud Task Force, a prosecutor-led multi-agency task force with representatives from more than eight different federal law enforcement agencies. Additionally, the department is hiring Assistant U.S. Attorneys in multiple U.S. Attorney’s Offices whose focus will be UI fraud prosecutions. Since the start of the pandemic, over 140 defendants have been charged and arrested for federal offenses related to UI fraud. In one case, U.S. v. Leelynn Danielle Chytka, in the Western District of Virginia, a defendant recently pleaded guilty for her role in a scheme that successfully stole more than $499,000 in UI benefits using the identities of individuals ineligible for UI, including a number of prisoners.
Through the department’s International Computer Hacking and Intellectual Property (ICHIP) program, ICHIP advisors have provided assistance and case-based mentoring to foreign counterparts around the globe to help detect, investigate and prosecute fraud related to the pandemic. The ICHIPs have helped counterparts combat cyber-enabled crime (e.g., online fraud) and intellectual property crime, including fraudulent and mislabeled COVID-19 treatments and sales of counterfeit pharmaceuticals. ICHIPs conducted webinars for foreign prosecutors and law enforcement in Asia, Africa, Europe, and South America on how to take down fraudulent COVID-19 websites. These webinars addressed methods for finding the registrar for a particular domain and requesting a voluntary takedown as well as the U.S. legal processes necessary for obtaining a court order that would bind a U.S. registrar. This has resulted in the take down of multiple online COVID-19 scams and significant seizures of counterfeit medicines and medical supplies such as masks, gloves, hand sanitizers and other illicit goods.
The department has also brought actions to combat coronavirus-related fraud schemes targeting American consumers. With scammers around the world attempting to sell fake and unlawful cures, treatments, and personal protective equipment, the department has brought dozens of civil and criminal enforcement actions to safeguard Americans’ health and economic security. The department has prosecuted or secured civil injunctions against dozens of defendants who sold products — including industrial bleach, ozone gas, vitamin supplements, and colloidal silver ointments — using false or unapproved claims about the products’ abilities to prevent or treat COVID-19 infections. The department has also worked to shutter hundreds of fraudulent websites that were facilitating consumer scams, and it has taken scores of actions to disrupt financial networks supporting such scams. The department is also coordinating with numerous agency partners to prevent and deter vaccine-related fraud.
The department is also using numerous civil tools to address fraud in connection with CARES Act programs. For example, in the Eastern District of California, the department obtained the first civil settlement for fraud involving the Paycheck Protection Program, resolving civil claims under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and the False Claims Act (FCA) against an internet retail company and its president and chief executive officer arising from false statements to federally insured banks to influence those banks to approve, and the SBA to guarantee, a PPP loan. FIRREA allows the government to impose civil penalties for violations of enumerated federal criminal statutes, including those that affect federally-insured financial institutions. The FCA is the government’s primary civil tool to redress false claims for federal funds and property involving a multitude of government operations and functions. The FCA permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Such whistleblower complaints have been on the rise as unscrupulous actors take advantage of vulnerabilities created by the COVID-19 pandemic and the new government programs disbursing federal relief, and whistleblower cases will continue to be an essential source of new leads to help root out the misuse and abuse of taxpayer funds.
Indictments and other criminal charges referenced above are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The unprecedented pace and tempo of these efforts is made possible only through the diligent work of a wide range of Justice Department partners, including the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section, the Civil Division’s Commercial Litigation Branch (Fraud Section) and Consumer Protection Branch, U.S. Attorneys’ Offices throughout the country, and law enforcement partners from the FBI, Department of Labor Office of Inspector General, U.S. Secret Service, IRS-Criminal Investigation, Defense Criminal Investigative Service, Homeland Security Investigations, U.S. Postal Inspection Service, the Offices of Inspectors General from the Small Business Administration, Department of Homeland Security, Social Security Administration, Federal Deposit Insurance Corporation, Department of Health and Human Services, Department of Veterans Affairs, Federal Housing Finance Agency and Federal Reserve Board, Food and Drug Administration’s Office of Criminal Investigations, Treasury Inspector General for Tax Administration, Financial Crimes Enforcement Network, Special Inspector General for Pandemic Relief, Pandemic Response Accountability Committee, OCDETF Fusion Center and OCDETF’s International Organized Crime Intelligence and Operations Center.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.