Al Parish

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Al Parish (born in the late-1950s) is a former Charleston Southern University economist and business professor, who was sentenced to federal prison after pleading guilty to financial fraud. [1] [2] Nearly 300 people lost up to $66 million invested in Parish Economic's private investment funds.

Contents

Early Career and "Economan" Persona

Before being charged with fraud, Parish was known as a flamboyant local financial expert dubbed 'Economan'. [3] He gained notoriety for his extravagant lifestyle, including a $1.2 million pen collection, featuring a $170,000 diamond-encrusted pen. [4]

The Fraud Scheme

Parish orchestrated a Ponzi scheme through his company, Parish Economics. He falsified investment statements and used new investors' money to pay returns to earlier investors. The fraud included over $4 million set aside for Athletic Facilities improvements at Charleston Southern University.

Parish began serving a 24-year sentence in the summer of 2008 after pleading guilty to orchestrating a Ponzi scheme, admitting to swindling investors out of nearly $90 million. [5] He was ordered to pay restitution of $66.8 million. Investigators believe they will recover $9–15 million for investors, but the investigation has cost more than $2 million. [6] [7]

He served his sentence at Butner Federal Correctional Complex outside of Raleigh, North Carolina along with inmates such as Bernard Madoff, another high-profile financial fraudster. [8]

Compassionate Release

After serving about half his sentence, Parish was granted a "compassionate release" on March 17, 2021, due to a number of chronic health conditions and the risk of severe illness from coronavirus, according to an order by U.S. District Judge Richard Gergel. [9] Al Parish was released from federal prison on March 24, 2021.

Court documents reveal that Al Parish initially filed for compassionate release on April 10, 2020, citing the combined risk of COVID-19 and his chronic medical conditions as extraordinary and compelling reasons for compassionate release. However, this initial request was denied by the court, which determined that Parish's medical conditions at that time did not meet the threshold requirements for compassionate release.

Parish moved for reconsideration after contracting COVID-19. The court later reversed its decision upon discovering he was suffering from Stage 3B chronic kidney disease, allowing his release. [10]

Aftermath and Impact

The Al Parish case had a significant impact on the Charleston community and highlighted the need for increased scrutiny of investment advisors. Many of Parish's victims were retirees and small investors who lost their life savings. The case also led to changes in financial regulations and increased awareness about Ponzi schemes.

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References

  1. ↑ Smith, Bruce (5 October 2007). "S.C. economist pleads guilty in fraud". USA Today. The Associated Press. Retrieved 2009-09-29.
  2. ↑ Stock, Kyle; Schuyler Kropf (26 June 2008). "Al Parish discusses the collapse of his investment empire". The Post and Courier. Archived from the original on 2010-11-19. Retrieved 2009-09-29.
  3. ↑ "Economan: Superthief". American Greed. CNBC. Retrieved 2009-09-29.
  4. ↑ Associated Press (9 November 2006). "College Professor Displays $170,000 Pen". San Francisco Chronicle. Retrieved 2009-09-29.[ dead link ]
  5. ↑ Renaud, Tim (March 25, 2021). "Once-famed local economist jailed over financial fraud granted early release from federal prison".
  6. ↑ Kropf, Schuyler; Kyle Stock (24 February 2008). "Parish's 4 homes expected to go quickly at auction". The Post and Courier. Retrieved 2009-09-29.
  7. ↑ Stock, Kyle (27 July 2007). "Hunt for Parish's stuff cost nearly $13,000 a day". The Post and Courier. Retrieved 2009-09-29.
  8. ↑ Owens, Andy (14 July 2009). "Al Parish, Bernie Madoff to be jailmates in N.C." Charleston Regional Business Journal. Retrieved 2009-09-29.
  9. ↑ Balchunas, Caroline (2021-03-25). "Al Parish still owes fraud victims nearly $63 million as feds grant release from prison". WCIV. Retrieved 2024-10-21.
  10. ↑ Renaud, Tim (March 25, 2021). "Once-famed local economist jailed over financial fraud granted early release from federal prison".
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