On August 19, 2010, along with other news sources, we published a story regarding investment fraud victims of John Gardner Black. Mr. Black subsequently protested that ours and other stories published concerning him were inaccurate.
Below are the inaccuracies he reports, verbatim, regarding ours and apparently other publications which concern him. We do not purport to have confirmed the accuracy of Mr. Black’s response at this time, but felt it fair to publish the corrections he claims should be made.
1.) I did not plead guilty to securities fraud. If I had, do you really think the SEC would have reinstated me? My guilty plea was to not informing my customers of the liquidation value of securities they did not own.
2.) The $61.3 million in restitution was paid. I already have a court order stating it was paid. The motion was for disgorgement. All my clients were made whole.
3.) The earnings rate of 14% was stipulated by the government in 2000 after a thorough investigation by the US Attorney’s Office
4.) It was the government that stated that I did not take any money from my clients
5.) It was the trustee, Mr. Thornburgh, that stated the profits in my company that went to the clients in 1997 was over $20 million. That money came from the 14% earnings rate versus a 5% payout rate