The Brad Sherman Scam
It's a guaranteed investment scam only available to a politician with the know-how — and the loose ethics — to pull it off. And Brad Sherman has used it to pocket nearly half a million dollars over his career. Read on to learn all about the Brad Sherman Scam.
-How it works-
Brad Sherman loans his campaign money.
Brad Sherman raises money from his special interest donors.
Brad Sherman has his campaign repay the principal — but lets the interest continue to accrue.
Brad Sherman later collects the interest — reaping huge profits on his own loan.
-The First Sherman Scam-
On December 29, 1989, Brad Sherman loaned his campaign $237,399.
Ten years later, his campaign had paid back the principal — but the interest had continued to accrue.
By 2000, the unpaid interest had grown to $111,148.97 — a 47 percent profit on Sherman's original investment.
-How Brad Sherman got rich-
Brad Sherman ran his scam at least 15 times in his California campaigns, including one campaign (for state controller) that he never actually ran.
He then did it 21 times in his Congressional campaigns, for a total of at least 36 profit-making, pocket-padding loans.
Over the course of sixteen years, Sherman continuously had his campaigns pay off the principal on these loans — but charged high interest rates that allowed him to reap huge profits on his original investment.
By 2005, Sherman's scam had netted him nearly half a million dollars in interest.