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Convicted ‘Wall Street Whiz Kid’ charged in new investment scam

David Bloom, a New York native twice convicted in con schemes, faces new charges in Los Angeles that he defrauded investors out of a quarter million dollars.

LOS ANGELES (CN) — A convicted con man who rose to notoriety in the 1980s as the "Wall Street Whiz Kid" was accused of stealing $250,000 from victims in a new investment scam.

David Bloom, 59, is charged with nine counts of security fraud and nine counts of grand theft, with special allegations that he has two or more felony convictions already, according to a statement Tuesday by Los Angeles County District Attorney's Office.

“David Bloom managed to convince hard-working people to turn over their earnings as part of a fraudulent investment scheme,” District Attorney George Gascón said in the statement. “Anyone who believes they fell victim in this case or other financial scams are encouraged to report it to my office or their local law enforcement agency. Those who prey upon people for their own selfish gain will be held accountable for their actions.”

Bloom was arrested Monday and was expected to appear in court today, according to the DA's office.

The name of an attorney representing Bloom wasn't immediately available.

The New York native acquired his nickname in the 1980s when at the age of 23 he managed to defraud investors, including the Sultan of Brunei, Bill Cosby and the Rockefeller family, out of $15 million. He pleaded guilty to federal charges of mail and securities fraud and spent five years in prison.

He used an unregistered securities firm at the time to solicit money from investors, but according to federal prosecutors, he bought art, real estate and other items for himself with his clients' money.

In 2000, Bloom was again accused in a con scheme in New York. That time he was charged with grand larceny and trying to swindle employees at a Manhattan restaurant out of $50,000 to $200,000 with false promises to invest their money in the stock market and initial stock offerings. He again pleaded guilty and was sent to prison.

In the LA case, Bloom is accused of committing multiple counts of theft between 2021 and 2023, by convincing people to give him money in exchange for investments and other financial opportunities. Prosecutors contend that Bloom never delivered on the investments and failed to return the bulk of the money given to him by the victims.

The Los Angeles Times reported earlier that Bloom sought out his victims at the Frolic Room, a dive bar on Hollywood Boulevard, and at the pool of the apartment complex where he lives. According to the newspaper, Bloom would persuade his victims that he could get them in on the ground floor for investments in stocks that hadn’t gone public yet, including Coinbase and Soho House.

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Categories:Criminal, Financial, Regional, Securities

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