Parish agrees to plead guilty
In exchange for plea, prosecutors will drop most charges
In exchange for plea, prosecutors will drop most charges
Disgraced former Charleston Southern University economist Al Parish has struck a deal with federal prosecutors and will change his plea from innocent to guilty Friday in the massive case of investor fraud that cost his clients nearly $90 million.
Details of the agreement have not been released, but Parish's lawyer said that in exchange for the plea, the U.S. Attorney's Office will drop eight of the 11 criminal fraud charges prosecutors filed against him.
The maximum penalty faced by Parish, 50, a former economics professor and self-proclaimed investment guru, will decrease from 205 years to 45 years.
Parish's punishment, however, may be much less because maximum sentences are rarely imposed and federal sentencing guidelines are no longer mandatory, only advisory.
Al Parish
U.S. District Judge David Norton will set the penalty, weighing Parish's defense of his financial acts against testimony of how his fraud disrupted the lives of his investors, who in some cases lost their life savings.
Parish is scheduled to be in court at 9 a.m. Friday. He will not be sentenced at the hearing. That will come weeks or months later.
Parish's lawyer, Andy Savage, said no sentencing recommendation will come from the government. "There's no assurance what his sentence will be," he said Tuesday.
Once the agreement is entered, Savage's next step will be to help Parish mitigate his prison time and explain how he came to burn through the savings of almost 500 people and businesses, including some $8.4 million invested by his employer, Charleston Southern University.
"There's a lot of work to do between now and his sentencing," Savage said.
Half of the total cash loss came from a single investor — Dr. Kalpana Patel, a New York resident, who deposited about $30 million in Parish's "informal pools" of investments, though it is believed some of the money came from family and friends.
The current charges against Parish include 10 counts of mail or wire fraud, which carry a maximum sentence of 20 years each, and one count of providing false information to investigators, which carries a maximum of five years in prison.
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All but eight of the fraud charges would be dismissed under the agreement.
Parish was indicted in April shortly after federal investigators seized his assets and launched a civil fraud probe of his unregistered offerings of private investment pools.
As the case expanded, agents discovered that about 460 investors were swindled. Most of Parish's investment accounts were nearly empty when investigators closed in. After the criminal charges were filed, Parish spent 49 days in jail before being released on bond. He has been staying with family in Hollywood since.
As word spread Tuesday that Parish will admit his guilt, some investors began to relive their involvement. Steven Marshank, a 57-year-old investor from Oregon, said that he and his wife wrote off their loss "emotionally" months ago. They have tried to forget their dealings with the flamboyant economist, though Marshank said they could have bought a bigger house with the "substantial amount" of cash that vanished under his care.
Still, Marshank said, a prison sentence would be justified.
"Part of me says this is a misguided human being that was completely psychologically impaired and he has a family and four kids, but part of me says that he knowingly, maliciously and intentionally defrauded a lot of people out of a lot of money," he said. "He's really ruined some people. I do think he should be made to pay."
Parish used much of the incoming cash to bankroll a lavish lifestyle which included a half-dozen homes, customized cars, garish clothing, fine art, kitsch and diamond-encrusted pens.
Partially through an auction, investigators have turned Parish's booty into about $3.3 million, a fraction of what he paid for his collections.
When the math is done, they expect to salvage less than 10 percent of what investors put in, and much of the proceeds will pay for the search and sale of the estate by a team of attorneys, accountants and appraisers.
Marshank said that he feels sorry for Parish but is trying to forget his decision to become involved in his errant investment.
"As long as you're embittered, then Al still has a grip on you," he said. "And I refuse to let him dampen my life any further."
Reach Schuyler Kropf at 937-5551 or skropf@postandcourier.com. Reach Kyle Stock at 937-5763 or kstock@postandcourier.com.
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Comments
DBurbage (anonymous) says...
steal a car and your on a oneway trip to prison.Steal 90 million dollars and what happens? Bet it's not prison.
October 3, 2007 at 12:56 a.m. ( permalink | suggest removal )
charleston (anonymous) says...
Agree, DBurbage. Justice is partial.
October 3, 2007 at 1:55 a.m. ( permalink | suggest removal )
poorboy (anonymous) says...
He should be confined to a jail for the rest of his life at the very least. He defrauded at least one person out of everything they had and used the money for his own gain. You think his professor salary could afford the life style he lived? It sickens me to think about and if I was one of those people I would want him out of jail too, so I could get to him!
October 3, 2007 at 6:14 a.m. ( permalink | suggest removal )
granny2 (anonymous) says...
Put his A$$ in prison for life,(give him a push lawn mower and make him and others in prison mow the sides of roads) I think his wife should do some time too, she knew what was going on.
October 3, 2007 at 7:11 a.m. ( permalink | suggest removal )
captivated (anonymous) says...
It is obvious that this lying, theiving, sorry excuse for a human being is seeking sympathy for his evil doings. They should sentence him to life without parole and put him in a maximum security prison so he can seek sympathy from his cellmates. I am sure they will show him some love.
October 3, 2007 at 8:06 a.m. ( permalink | suggest removal )
streetmutt (anonymous) says...
Golly -- where can I get a suit like that? I want to look like a total you-know-what too!!!
Pretty sad how the entire business community looked to this guy -- excuse me -- econo-man. Also, pretty sad how he was a professor at a Christian-based college. Christian values, anyone?
I guess as South Carolina moves into the knowledge economy, we will inevitably find and remove these pests.
Too bad he might not go to prison. He'd look fabulous in an orange jump suit!!!
October 3, 2007 at 8:31 a.m. ( permalink | suggest removal )
Diamondhead (anonymous) says...
Type in a google search "Best places to go to Prison" and Forbe.com will have a list. Don't worry Parish is not going to do hard time. The moral of the story, if you're going to steal:steal millions $$$
October 3, 2007 at 8:31 a.m. ( permalink | suggest removal )
RTC (anonymous) says...
Gag a maggot! Was he an investor or a pimp?
Diamondhead, that is hilarious! Sounds like picking a vacation spot.
October 3, 2007 at 9:32 a.m. ( permalink | suggest removal )
Strider (anonymous) says...
Well, I love this part where I say I told you so..but..there are two societies, one for the rich (and people who steal millions are considered rich) and the working class..It looks as if my prediction of no jail time is going to actually happen. Makes me sick!
October 3, 2007 at 9:47 a.m. ( permalink | suggest removal )
Kerry (anonymous) says...
Does anyone believe the individuals, who forked over their money with visions of grandiose gains far beyond those attainable through "formal" means to an unlicensed, "colorful" investor, are the least bit responsible for the resulting outcome?
As with any investment, legitimate or otherwise, there are no guarantees.
If there were no risks, everyone would be driving purple Jaguars.
October 3, 2007 at 10:08 a.m. ( permalink | suggest removal )
greener1 (anonymous) says...
Thanks Kerry, at least I know one person with a brain responded above!
October 3, 2007 at 10:19 a.m. ( permalink | suggest removal )
truthseeker (anonymous) says...
Al is such a great con man. You know I think the Chamber of Commerce and our legislators still believes in him. If Al just lies low for a couple of years and comes back with a new look - maybe a different color of suit , he will be able to jump right in and be right back in the swing of things doing studies and making speeches.
I bet the professor of gnominomics just might have an uncle down in Nigeria who needs to get some money out of the country if any of you want to make some real money .
October 3, 2007 at 11:46 a.m. ( permalink | suggest removal )
yeahright (anonymous) says...
What happened to his "amnesia"? Savage brokered a deal and suddenly he's competent again?
October 3, 2007 at 11:56 a.m. ( permalink | suggest removal )
sjmehlhose (anonymous) says...
He looks like a bad characature of an inner city pimp. (Oh, that's right, an inner city pimp has more scruples)!
October 3, 2007 at 12:15 p.m. ( permalink | suggest removal )
stephaniem (anonymous) says...
I would rather see a dangerous man in prison instead of Parish. Just don't let him invest other people's money from now on.
pedophiles and real criminals are constantly out on parole because we can't afford more prisons
October 3, 2007 at 12:32 p.m. ( permalink | suggest removal )
sjmehlhose (anonymous) says...
Stephaniem:
Problem with that kind of thinking is that if you don't punish criminals like him, it encourages others to steal. Does it serve society to let scum like this steal pension money from defensless little old ladies, etc.? I say put him in a jail cell with some rapist or murderer and let them dole out justice.
October 3, 2007 at 12:48 p.m. ( permalink | suggest removal )
est8esq (anonymous) says...
Relax folks, he'll still see the inside of a regular old prison for many many many years. The plea deal on reduced counts will take his sentence from 205 years to around 45 years. He's going to prison, and will remain there until he is either an old old old man, or dead.
October 3, 2007 at 1:07 p.m. ( permalink | suggest removal )
MHA (anonymous) says...
He should go to prison simply based on his clothing! Look at that suit jacket he's wearing!
October 3, 2007 at 2:58 p.m. ( permalink | suggest removal )
dog (anonymous) says...
My guess is he is going to prison for at least 15 years (but he deserves more). I don't think probation should even be an option.
October 3, 2007 at 6 p.m. ( permalink | suggest removal )
kennyt (anonymous) says...
When will this story ever end? Sell all his stuff give the people back there money and tell them to be smarter with their money and greed will get you no where.
October 3, 2007 at 6:53 p.m. ( permalink | suggest removal )
poorboy (anonymous) says...
Don't blame christians on his behalf. Just because he taught at a christian school you can't lump all christians together. That kind of mass judgements only works with muslims.... just kidding.
Send his big butt to jail and throw away the key! And what happened to his amnesia? That might friends is called a selective illness. When it works for him he selected to get it!
October 3, 2007 at 8:16 p.m. ( permalink | suggest removal )
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