Paul Pelosi Jr., the son of House Speaker Nancy Pelosi, has reportedly been linked to at least five business entities under investigation by authorities for alleged fraud.
The 52-year-old Paul Pelsoi Jr., the only son of Nancy and Paul Pelosi Sr., was hired by several firms that were subject to both federal and state probes, and meanwhile has “connections to a host of fraudsters, rule-breakers and convicted criminals,” although he has never been charged himself, according to DailyMail.com.
The website reports that in February 2007, Pelosi Jr. was hired as senior vice president by Omaha-based InfoUSA, a database marketing company that was investigated by the Iowa Attorney General’s Office several years earlier for allegedly selling consumer data to fraudsters.
The data was then used to scam sick and gullible elderly people out of money, it was alleged. The investigation was closed and no arrests were made. Pelosi Jr., who was paid a salary of $180,000 per year, joined the firm after the probe ended.
InfoUSA was founded by Vin Gupta, a major donor to former President Bill Clinton. The Associated Press reported that Gupta and his company were investigated by the Securities and Exchange Commission in 2007.
The probe was launched after Gupta was sued by shareholders who allege he misused company funds to fly Bill and Hillary Clinton on private corporate jets.
In 2010, the SEC charged Gupta and two others for “funneling illegal compensation to himself in the form of perks worth millions of dollars.” The case was eventually settled. Gupta did not admit or deny the allegations.
in 2009, Paul Jr. co-founded Natural Blue Resources Inc, an investment company whose stated mission was to “create, acquire, or otherwise invest in environmentally-friendly companies, including an initiative to locate, purify, and sell water recovered from underground aquifers in New Mexico and other areas with depleting water resources.”
But the SEC alleged that the company was secretly run by two convicted fraudsters — James E. Cohen and Joseph Corazzi. In 2014, the agency brought fraud charges against Cohen, Corazzi, former New Mexico Gov. Toney Anaya, and a former executive at the company, Erik Perry.
While Cohen and Corazzi claimed to be “outside consultants,” they in fact controlled the company “without disclosing their past brushes with the law to investors.” Pelosi Jr. reportedly owned more than 10 million shares of the company.
The SEC suspended trading in Natural Blue stock. Pelosi Jr. was never charged. According to DailyMail.com, the SEC acknowledged he did not play a “meaningful role” in one of the firm’s key transactions and even testified in court against those who were indicted.
The SEC also said that Pelosi Jr. “strenuously objected” to proposed fundraising contracts and was ousted from the board by Cohen and Corazzi.
Perry and Anaya both reached a settlement with the SEC.
In October 2013, Pelosi Jr. joined FOGFuels, a biofuel company. Just prior to his being named vice president, the company founder, Paul Marshall, was charged by the SEC for allegedly stealing $3 million from elderly investors.
Marshal was accused of using the money “to pay for a variety of…personal expenses, including luxury vacations, child support and alimony payments, and private school tuition and camps for his children.”
FOGFuels was dissolved in 2015. Three years later, Marshall was sentenced to six years in federal prison. He was given a reduced sentence after cooperating with the FBI in a separate bribery cases involving an official in Atlanta.
In 2014, Pelosi Jr. was named independent director at Targeted Medical Pharma, a Los Angeles-based firm. Seven months after his hiring, he quit the company. A year later, the Food and Drug Administration accused Targeted Medical Pharma of testing drugs on people without authorization, according to DailyMail.com.
The company was not subject to further legal action. It insisted that the investigation by the FDA was due to a “clerical issue.”
In the fall of 2014, Pelosi Jr. became “bus... (Read more)
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