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1
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In this episode of American Greed, in a
small town, a money manager named Bob
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McClain is a noted philanthropist,
giving away millions to charities.
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Please, from my heart to your heart.
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He reveled in that attention.
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I think he was totally in his element.
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I am a good guy.
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I am taking care of my city. I am taking
care of my people.
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But is McClain's show of wealth just
phony philanthropy?
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He did support causes that he appeared
to care about.
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The problem is you've got to remember
where the money came from.
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He was donating using other people's
money.
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In a small town in Tennessee,
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A man sits in the empty parking lot of a
church, alone with his thoughts and a
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loaded revolver.
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Robert McClain is in a world of trouble,
having squandered at least $40 million
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of clients' money.
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Will he seek salvation?
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Can he be saved?
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The story begins in 1985.
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When Bob McLean hangs out a shingle in
Murfreesboro, a small town 30 miles from
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Nashville. In the beginning, McLean and
Company is a one -man investment firm.
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McLean manages the money of old friends,
like his fraternity brother, Ron
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Venata. I was always told that Bob was
investing for himself, his
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family, and eight or ten other clients
such as myself.
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McLean offers Bonata guaranteed rates of
return between 8 % and 12%, buying
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primarily volatile futures and options
contracts.
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What Bob told me is when we're in the
market, he would go in and buy that
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morning. And then at night, before he
quit trading, we were liquid. And I
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like that part.
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Bonata is a successful commercial
contractor.
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This is one of the projects we completed
in the late 80s. He takes the profit
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from each building project and invests
it with McLean.
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Sometimes maybe for a few months,
sometimes maybe for six months. So
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it started for me.
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Over the years, McLean's above -market
investment returns are the talk of the
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town.
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They would say that, you know, this guy,
he's a self -made millionaire and that
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he's done it all himself and he's a guy
you'd really want to get with.
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Jonathan Quinn first meets McLean when
he's playing football for Middle
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Tennessee State University.
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It's McLean's alma mater, and he's
active in the Athletic Booster Club.
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Quinn, a star quarterback, has a
breakout senior year, and a world of
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opportunity opens up for him.
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With my size and arm strength and speed,
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I ended up getting looked at a little
bit. Got invited to the NFL Combine. Did
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well. Teams worked me out. Next thing
you know, I got drafted.
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Quinn goes in the third round of the NFL
draft at the Jacksonville Jaguars.
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So I got a signing bonus, which was way
more than I could possibly dream of.
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And statistically, NFL players are
bankrupt within one to two years after
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leave the NFL. A really high percentage.
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I wanted to be safe. I did not want to
be one of those guys. You know, we
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have a lot growing up, and so I wanted
to put my money where I knew it would be
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there that if I played one year or if I
played 15, I knew I would have it.
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Quinn has a seven -year run in the NFL,
and with a young, growing family, he
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lives frugally.
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All of his savings goes straight to Bob
McClain.
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He just said that he invests in things
that are profitable, whether it's
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bonds, real estate.
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you know, buying businesses, that type
of thing.
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Unknown to investors, his practices are
not only unusual, they're illegal.
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McLean invests his clients' money in his
own name and gives them unsecured
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promissory notes, IOUs, offering what
seems like a good explanation.
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He would tell me that he would pool the
money and he would buy contracts
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overseas or futures, and he could make
more money trading in larger...
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if you will, than individual blocks, and
it seemed to make sense at the time,
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and he always did what he said he would
do.
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For his clients, it all seems like a
normal business arrangement with a
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advisor.
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He says I hit singles. He says I keep
hitting singles. I don't go for the home
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00:05:02,540 --> 00:05:07,440
runs over the long haul. That's going to
be better than the volatility of the
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stock market, and that sounded good. It
sounded safe. It sounded secure.
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I always got my checks on time.
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They were always.
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exactly when and where they were
supposed to be, and for the correct
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But for business law professor Sandra
Benson, then a local estate attorney,
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arrangement seems highly unusual.
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She meets with a client who provides
information on what he calls his
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investment at McLean & Company. He
enjoys the steady, guaranteed returns.
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I was expecting to see an account
statement listing the client's assets,
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instead the client brought to me a one
-paragraph promissory note, just a few
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sentences, made payable to the client
from Bob McLean.
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Benton suspects the notes are illegal.
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Bob McClain's promissory notes would
have been securities that needed to be
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registered. He was selling those. He
would have needed a license to do that.
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What's more alarming, the notes are
reminiscent of a certain infamous con
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artist. In Charles Ponzi's scheme, he
used promissory notes to attract
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and told investors he was investing
their money on their behalf. And he was
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earning profits in what he said was a
lucrative enterprise.
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A skeptical Benson calls McLean, who was
unwilling to provide more than fuzzy
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details about his investments.
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He told me, well, the client can get
their money out any time. It's a demand
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note. Of course, after that
conversation, I suggested that is
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client do, get their money out. The
client does not share her doubts
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and removes only part of his money.
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Indeed, Sandra Benson seems to be the
only person in town who has any doubts
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about Bob McClain.
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Next on American Greed, Bob McClain
makes it big.
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I heard anywhere from $20 to $50 to $100
million.
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And his spending spins out of control.
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He would take a limousine to a football
game to his skybox.
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And later, Bob McClain's private life.
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The bachelor gives close to a million
dollars to several men.
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Young men that had been students at
Middle Tennessee State University, there
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not appear to be any kind of employment
relationship there.
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00:07:50,030 --> 00:07:56,110
By 2001, money manager Bob McClain
appears to have the Midas touch. He's
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managing millions for his satisfied
clients.
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The investment vehicle itself is highly
unorthodox.
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McClain is investing in his own name,
supposedly on behalf of his clients.
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00:08:09,050 --> 00:08:14,690
He offers unsecured promissory notes
with fixed returns of 10 to 20 percent.
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But in the small town of Murfreesboro,
Tennessee, the notes and Bob's word are
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as good as gold.
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People are like the hold back from the
old days when a handshake and your
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word were a time -honored tradition. For
over 20 years, Bob McClain did exactly
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what he told me he would do.
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Ron Bonata is an old friend of McClain
and his biggest investor.
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He trusts McClain 100%.
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and his faith is affirmed each time he
visits McLean's office and sees his
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trading desk.
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When I would visit him, he would always
pay careful attention to those screens,
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and he would make a big deal out of it.
Well, because this is happening, you're
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going to see a reaction over here in a
few minutes, and you did.
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When musician Alan Moore retires and
settles in Murfreesboro...
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An acquaintance introduces him to Bob
McLean.
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I remember I said to him, I'm not one of
your larger fish in the pond.
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I've just sold a house up north, and I
don't know if you even deal with people
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who have as little as I do to invest.
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He said, no, he absolutely did, and that
he would be interested in talking about
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symphony. He was interested in the fact
that I had a studio here, and we became
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very comfortable very quickly.
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McLean is a master salesman, quickly
establishing common ground with anyone.
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With Moore, it's a love of music.
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I think now looking back, that first day
that I met him in the office, he
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already had orchestrated in his mind, he
worked quite fast, that he was going to
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woo me by the commonality of the bond of
music, symphonies, instruments.
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And that's what he did.
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Moore invests with McLean.
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To his surprise, it takes a month for
McLean to write him a promissory note.
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And when it came, I remember thinking,
this is barely legal.
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But yet, I'm surrounded by some very
wonderful people in our community who
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invested far more than I did. So I just
sort of, as a musician, didn't have any
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reason to doubt.
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Even more reassuring, McLean invests for
his own family.
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They trusted him.
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to handle the family money and grow it
so that it would provide
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for his mother and then be an
inheritance for his brothers.
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Bob McLean says, trust me, and nearly
everyone does.
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Everyone that is but Sandra Benson, a
business law professor at Middle
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State.
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For years, she suspects McLean's fund
bears the marks of a Ponzi scheme.
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He was a one -person show, wasn't
accountable.
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He was taking monies in and holding them
jointly in his account, pooling
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that with other investors' money.
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But in Murfreesboro, almost no one
shares Benson's doubts.
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In fact, long -time investors like Ron
Bonata decide to double down.
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The longer I worked, the more money I
made.
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So I had more money to invest with Bob.
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Banana owned several million dollars of
real estate.
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And Bob talked me into using the equity
that I had.
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He decides to use some of his real
estate holdings as collateral to borrow
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banks. So, for example, if I had a piece
of real estate that was worth $1
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million, the bank...
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On an 80 to 20 loan to value ratio would
loan me $800 ,000.
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I would invest $800 ,000 with Bob
McLean.
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Bob McLean would pay me 20 % interest.
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I would pay the bank 6 or 7.
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So there is a 13 or 14 % spread, and
that's a lot of money.
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By 2002, people notice a big change in
Robert McLean.
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The once low -profile broker now seems
to shout success.
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All of a sudden you begin to see him at
a much higher profile at different
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functions and different charity events
and so forth.
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He began to come around in a chauffeur
-driven limousine, and so it created
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quite a conversation, you know, from
that standpoint.
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McLean wants to see his name chiseled in
stone at his beloved alma mater.
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In late 2002, he pledges $1 .5 million
to MTSU's School of Music, and
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it's renamed the Robert W.
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McLean School of Music.
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When Bob did that, the news media
carried it. He was perceived as very
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in giving and giving back to his
university, and so many professors and
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instructors and administrators at the
university, in turn, invested with
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00:13:24,590 --> 00:13:27,570
But there's a mystery at the heart of
Bob McClain.
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Where exactly is all the money coming
from?
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McClain is managing at least $40 million
of local investors' money, but he's
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living like someone who has his own
multimillion -dollar portfolio.
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You know, like everyone else, I
wondered, you know, what has happened?
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How has he done this? How has he
changed? Because you go from a fairly
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profile to this, and you go from, you
know...
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Good financial position to one that's,
you know, a total different level.
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Rumors abound about how McLean made his
millions.
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I had heard that Bob had invented real
-time computer data for the crawling
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stock market quotes that you see at the
bottom of various TV stations and that
191
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he had sold that to CBS for a
significant sum of money.
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Bob had developed a trading program.
193
00:14:23,120 --> 00:14:25,880
and that he sold that for millions.
194
00:14:26,160 --> 00:14:28,880
I heard anywhere from $20 to $50 to $100
million.
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00:14:29,960 --> 00:14:35,920
And as to how exactly he's investing his
portfolio, McLean's clients are a
196
00:14:35,920 --> 00:14:37,240
little fuzzy on that too.
197
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He wasn't intentionally secretive. I
think he wanted to get him off the air
198
00:14:44,020 --> 00:14:50,120
it was just a bit too complicated and to
just sort of, I mean, he never said
199
00:14:50,120 --> 00:14:51,560
this, but it was like, trust me.
200
00:14:52,140 --> 00:14:53,140
You'll be glad she did.
201
00:14:53,860 --> 00:14:59,920
While his investment strategy remains
mysterious, McLean's spending is for all
202
00:14:59,920 --> 00:15:00,920
to see.
203
00:15:01,220 --> 00:15:04,920
In 2003, McLean moves to a new home in a
gated community.
204
00:15:05,660 --> 00:15:11,020
He hires a decorator who spends two
years buying lavish decor for the home,
205
00:15:11,180 --> 00:15:14,240
including a $50 ,000 Steinway piano.
206
00:15:14,860 --> 00:15:19,080
He buys a $1 .4 million condo on
Florida's Gulf Coast.
207
00:15:20,650 --> 00:15:26,490
He buys a $1 .5 million lake house and
rides around in a custom -built
208
00:15:26,490 --> 00:15:29,350
limousine, complete with his own
chauffeur.
209
00:15:29,630 --> 00:15:36,170
I got into what appeared to be very
pastel shades, purple lights, in the
210
00:15:36,170 --> 00:15:37,170
the limo.
211
00:15:37,450 --> 00:15:41,130
Champagne was in the limo ice chest.
212
00:15:41,670 --> 00:15:46,410
Next on American Green, McLean's
ultimate vanity project.
213
00:15:47,020 --> 00:15:50,080
A Hollywood -style movie shot in his own
hometown.
214
00:15:50,560 --> 00:15:53,260
He was living the lifestyle of the rich
and famous.
215
00:15:54,080 --> 00:15:56,940
American Express bills of $10 ,000 to
$20 ,000 a month.
216
00:16:12,460 --> 00:16:18,560
In 2003, Robert McClain is a noted money
manager and philanthropist in
217
00:16:18,560 --> 00:16:19,760
Murfreesboro, Tennessee.
218
00:16:20,360 --> 00:16:24,620
His client list is flush with the
wealthiest people in town.
219
00:16:25,160 --> 00:16:30,920
And he donates millions to charity,
helping to create the Robert W. McClain
220
00:16:30,920 --> 00:16:31,920
School of Music.
221
00:16:32,320 --> 00:16:36,120
At the Stones River Country Club, he is
a local celebrity.
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00:16:36,840 --> 00:16:38,140
Almost everyone.
223
00:16:38,760 --> 00:16:42,680
would come up and mention something
about their golf game, something about
224
00:16:42,680 --> 00:16:49,560
impending social event, something to pet
Bob on the back. And I think he
225
00:16:49,560 --> 00:16:51,180
reveled in that attention.
226
00:16:51,620 --> 00:16:56,460
McLean shares his wealth with his
favorite causes, including the Country
227
00:16:56,460 --> 00:16:57,840
Hall of Fame in Nashville.
228
00:16:58,460 --> 00:17:04,099
The Hall of Fame wants to buy a guitar
once owned by country legend Mabel
229
00:17:04,099 --> 00:17:07,040
and a mandolin played by Bill Monroe.
230
00:17:07,710 --> 00:17:08,990
the father of bluegrass.
231
00:17:09,550 --> 00:17:15,810
As WSMV, Nashville's NBC affiliate,
reports... The holy grail for bluegrass
232
00:17:15,810 --> 00:17:20,310
music. Back in 1981, Monroe brought the
fabled mandolin with him during an
233
00:17:20,310 --> 00:17:21,310
interview with Dan Miller.
234
00:17:23,410 --> 00:17:27,150
Now they're two of the most important
instruments in music history.
235
00:17:27,630 --> 00:17:32,290
This was the guitar... The Hall of
Fame's director, Kyle Young, meets with
236
00:17:32,290 --> 00:17:34,770
McClain. Oh, I immediately liked him.
237
00:17:35,050 --> 00:17:40,950
I mean, he demonstrated very early on
that he cared deeply about music and
238
00:17:40,950 --> 00:17:43,950
therefore about what we do.
239
00:17:44,270 --> 00:17:45,370
Mr. Bob McLean.
240
00:17:45,950 --> 00:17:48,390
He was an easy guy to talk to.
241
00:17:48,890 --> 00:17:55,590
McLean pledges $1 .5 million to purchase
these historic treasures and joins the
242
00:17:55,590 --> 00:17:56,590
board of directors.
243
00:17:56,810 --> 00:17:59,450
It's played from my heart to your heart.
244
00:17:59,730 --> 00:18:01,010
It will touch you.
245
00:18:02,920 --> 00:18:07,420
Highly publicized celebrations bring in
artists like bluegrass legend Earl
246
00:18:07,420 --> 00:18:11,200
Scruggs, the Carter family, and Vince
Gill.
247
00:18:11,400 --> 00:18:16,920
In fact, Vince invited Bob up on stage
to play with him.
248
00:18:17,580 --> 00:18:19,360
He liked the spotlight.
249
00:18:19,640 --> 00:18:20,860
He liked the attention.
250
00:18:21,740 --> 00:18:23,100
That's his personality.
251
00:18:33,020 --> 00:18:35,260
to new investors.
252
00:18:36,060 --> 00:18:42,520
And in his hometown of Shelbyville,
population 16 ,000, McLean spends an
253
00:18:42,520 --> 00:18:47,640
astonishing $1 .3 million financing a
movie entitled Our Very Own.
254
00:18:47,960 --> 00:18:52,380
It attracts Hollywood star Jason Ritter,
the son of John Ritter.
255
00:18:52,800 --> 00:18:59,100
He even invited me to go along and see
the movie set and impressed me.
256
00:18:59,660 --> 00:19:05,060
Retired school teacher Becky Lucinski
meets Bob as she recovers from two
257
00:19:05,060 --> 00:19:09,920
traumatic events, the death of her
father and a diagnosis of breast cancer.
258
00:19:10,820 --> 00:19:16,940
At that time, I inherited some money
from my father, and
259
00:19:16,940 --> 00:19:23,140
since I was so weak from chemo, my
brother invested the money with Bob
260
00:19:23,860 --> 00:19:28,640
Impressed by his reputation, Lucinski
invests $600 ,000.
261
00:19:29,550 --> 00:19:33,170
most of her inheritance for a fixed 15 %
return.
262
00:19:33,730 --> 00:19:39,250
To my knowledge, his name was good in
Murfreesboro, so it just seemed like a
263
00:19:39,250 --> 00:19:40,250
right thing to do.
264
00:19:41,290 --> 00:19:46,150
It seemed like the right thing to do,
especially when the wealthiest people in
265
00:19:46,150 --> 00:19:47,950
town are McLean investors.
266
00:19:48,690 --> 00:19:51,730
You know, you tend to look at something
like that and go, well, my gosh, if it's
267
00:19:51,730 --> 00:19:55,370
good enough for them, surely it's good
enough for me. And then I begin to find
268
00:19:55,370 --> 00:19:57,650
people whose net worth I'll...
269
00:19:57,900 --> 00:20:04,480
Likely we'll never see. And so you get
so many of these notable people with
270
00:20:04,540 --> 00:20:06,420
and you become unquestionable.
271
00:20:07,880 --> 00:20:11,940
A few people, however, have questions
about Bob McClain.
272
00:20:12,460 --> 00:20:19,220
One is Mark Purtle, a real estate
developer and car dealer. In 2003,
273
00:20:19,220 --> 00:20:24,240
has a half million dollars he wants to
invest for nine months until he opens a
274
00:20:24,240 --> 00:20:25,240
new dealership.
275
00:20:26,280 --> 00:20:27,920
McLean offers him a deal.
276
00:20:28,220 --> 00:20:34,200
He did agree to pay me 12%, which at
that time was significantly above the
277
00:20:34,200 --> 00:20:37,560
certificate of deposit rate at a local
bank.
278
00:20:37,780 --> 00:20:42,440
So I thought, well, this is a good place
to park the money for about nine
279
00:20:42,440 --> 00:20:43,440
months.
280
00:20:43,800 --> 00:20:49,220
When it comes time to open the
dealership, Purtle requests the money
281
00:20:49,220 --> 00:20:55,220
interest. Then he became unreachable,
and each time that I would call him...
282
00:20:55,530 --> 00:20:57,350
The voicemail would be full.
283
00:20:57,550 --> 00:20:59,870
It would be impossible to leave him a
message.
284
00:21:00,490 --> 00:21:05,650
McLean finally responds, but dribbles
the money back in small installments.
285
00:21:05,930 --> 00:21:09,050
Purtle has to tap into other funds to
open his venture.
286
00:21:09,430 --> 00:21:14,890
Though McLean eventually pays him back
in full, Purtle sees signs of trouble.
287
00:21:15,550 --> 00:21:19,890
Here was a person who was supposed to
have tens of millions of dollars in both
288
00:21:19,890 --> 00:21:25,330
his personal assets and other people's
investments, and that he couldn't return
289
00:21:25,330 --> 00:21:30,010
approximately a half a million dollars,
you know, in one payment.
290
00:21:30,810 --> 00:21:32,610
Where is all the money going?
291
00:21:33,290 --> 00:21:35,690
McLean clearly is living a lavish
lifestyle.
292
00:21:36,970 --> 00:21:42,330
He would take a limousine to a football
game to his skybox, and he always wanted
293
00:21:42,330 --> 00:21:45,630
to include the most prominent people in
the community.
294
00:21:47,270 --> 00:21:52,850
He makes another splashy million -dollar
contribution to his alma mater in front
295
00:21:52,850 --> 00:21:54,010
of a huge audience.
296
00:21:54,710 --> 00:21:58,510
It was actually our first nationally
televised football game. It was probably
297
00:21:58,510 --> 00:22:02,230
the largest crowd attendance we'd had,
and so we had a formal presentation in
298
00:22:02,230 --> 00:22:03,230
recognition of the game.
299
00:22:03,980 --> 00:22:08,220
He presented a big, huge check and made
a big splash about the pianos that he
300
00:22:08,220 --> 00:22:09,400
had purchased for the university.
301
00:22:09,760 --> 00:22:13,080
And, you know, you wonder whether or not
there's other reasons for doing that.
302
00:22:13,480 --> 00:22:19,800
This man is a symbol of hard work,
determination. In public, McLean's image
303
00:22:19,800 --> 00:22:24,800
golden. But not all of McLean's money is
given with such pomp and circumstance.
304
00:22:26,060 --> 00:22:31,460
The bachelor is giving regular cash
gifts to more than a dozen men, as
305
00:22:31,460 --> 00:22:33,180
investigators will later learn.
306
00:22:33,610 --> 00:22:40,490
It was unusual to give $3 ,000 to $5
,000 gifts continually to these people,
307
00:22:40,550 --> 00:22:43,410
and we could not determine what they
were being paid for.
308
00:22:44,030 --> 00:22:48,070
Most of the men are current and former
students at Middle Tennessee State
309
00:22:48,070 --> 00:22:52,690
University. In some cases, McLean pays
for apartments and tuition.
310
00:22:53,390 --> 00:22:59,430
In all, McLean spends close to a
staggering $1 million in cash gifts to
311
00:22:59,430 --> 00:23:00,810
men in four years.
312
00:23:01,580 --> 00:23:07,680
I guess looking back, I think Bob had a
secretive or a you can't know what I
313
00:23:07,680 --> 00:23:10,620
know, you can't go where I go or do what
I do side.
314
00:23:10,960 --> 00:23:16,000
After years of unrestrained spending and
secret gifts, it's no surprise when
315
00:23:16,000 --> 00:23:19,300
some of his investors say he seems
desperate for cash.
316
00:23:21,720 --> 00:23:28,540
Jonathan Quinn, a former NFL player, has
invested $700 ,000 with McLean over the
317
00:23:28,540 --> 00:23:29,540
last 10 years.
318
00:23:30,220 --> 00:23:32,700
He called me one time toward the end
about $10 million.
319
00:23:33,020 --> 00:23:37,700
If I could find it, then he would pay
10%. He'd make 10, I'd make 10.
320
00:23:39,380 --> 00:23:42,380
I don't know people. I mean, people I
know, I'm not going to call anybody
321
00:23:42,380 --> 00:23:43,259
for $10 million.
322
00:23:43,260 --> 00:23:45,640
You know, that doesn't make sense.
323
00:23:46,180 --> 00:23:47,540
Quinn turns him down.
324
00:23:48,140 --> 00:23:54,340
He calls Mark Purtle with an even better
offer, a guaranteed 20 % return on a
325
00:23:54,340 --> 00:23:55,680
multimillion -dollar investment.
326
00:23:56,670 --> 00:24:00,750
It kind of astounded me that someone
could promise 20%.
327
00:24:01,290 --> 00:24:04,770
It's almost impossible. There's probably
two people in the history of the stock
328
00:24:04,770 --> 00:24:09,510
market that produce 20 % returns on a
year -after -year basis.
329
00:24:09,830 --> 00:24:15,070
And I found it very disturbing. And I
knew at that time that I had no
330
00:24:15,070 --> 00:24:17,290
of ever giving him any of my money
again.
331
00:24:17,930 --> 00:24:23,210
Next on American Greed, see how investor
Ron Bonata uses the camera in his cell
332
00:24:23,210 --> 00:24:26,390
phone to bring a Ponzi schemer to his
knees.
333
00:24:26,730 --> 00:24:27,730
I think.
334
00:24:28,170 --> 00:24:31,390
This is what begins to bring the house
of cards down.
335
00:24:45,890 --> 00:24:52,710
By 2006, Bob McLean claims he has $40
million under management, but his
336
00:24:52,710 --> 00:24:54,950
investment strategy is highly unusual.
337
00:24:56,040 --> 00:25:01,980
McLean issues promissory notes to
clients and says he invests their money
338
00:25:01,980 --> 00:25:02,980
his own name.
339
00:25:03,140 --> 00:25:08,580
I can sum up a major red flag in three
words, unsecured promissory note.
340
00:25:10,940 --> 00:25:16,500
After investing for nearly 20 years,
McLean's old fraternity brother, Ron
341
00:25:16,500 --> 00:25:21,080
Venata, has unwittingly served as the
keystone of a Ponzi scheme.
342
00:25:21,600 --> 00:25:24,680
He's the single biggest McLean investor.
343
00:25:25,150 --> 00:25:26,410
with a total of $8 million.
344
00:25:26,970 --> 00:25:33,090
$3 .5 million is his own cash, and
another $4 .5 million is borrowed from
345
00:25:33,090 --> 00:25:36,630
banks. For years, the arrangement works
beautifully.
346
00:25:37,250 --> 00:25:38,790
Bob's paying me like a clock.
347
00:25:39,090 --> 00:25:41,010
I'm paying the bank like a clock.
348
00:25:41,650 --> 00:25:42,650
Everybody's happy.
349
00:25:43,370 --> 00:25:49,370
Until January 2007, when Venata gets a
disturbing call.
350
00:25:49,690 --> 00:25:54,270
I'm asked to come to the bank by senior
loan officers, and I do.
351
00:25:54,880 --> 00:26:00,220
And at that time, they drop a bomb. They
say, we need you to pay this loan off
352
00:26:00,220 --> 00:26:01,580
as quickly as you can.
353
00:26:02,520 --> 00:26:05,700
I say, for what reason? Give me a
reason.
354
00:26:06,500 --> 00:26:07,880
They gave me no reason.
355
00:26:08,300 --> 00:26:12,060
The bank knows about Venata's large
investment with McLean.
356
00:26:12,440 --> 00:26:16,460
And perhaps they've heard whispers of
McLean's lavish spending.
357
00:26:17,160 --> 00:26:19,320
Whatever the reason, they're calling in
the loan.
358
00:26:20,020 --> 00:26:25,800
Bonato phones his old friend and asks to
cash out $4 .5 million of his equity.
359
00:26:26,520 --> 00:26:33,220
And Bob assured me that we would have
the money available, and so I was
360
00:26:33,220 --> 00:26:36,440
expecting to pay the bank off at the end
of April.
361
00:26:37,300 --> 00:26:41,000
But I go to the post office to get my
check, and it's not there.
362
00:26:41,960 --> 00:26:45,280
Several weeks later, McClain still does
not deliver.
363
00:26:45,700 --> 00:26:47,980
Within two or three weeks...
364
00:26:48,480 --> 00:26:50,760
his excuses start changing.
365
00:26:51,040 --> 00:26:57,580
The new excuse is the money's tied up
and it's in an offshore account, but
366
00:26:57,580 --> 00:27:00,460
being held up because of the, quote,
Patriot Act.
367
00:27:01,580 --> 00:27:06,360
Bonata grows increasingly frustrated and
seeks counsel from attorney Steve
368
00:27:06,360 --> 00:27:11,040
Riley. I spent a lot of time talking to
him about the fact that the money might
369
00:27:11,040 --> 00:27:12,040
not be there.
370
00:27:12,300 --> 00:27:14,560
And, frankly, he resisted.
371
00:27:16,140 --> 00:27:19,560
Which didn't surprise me. They had been
friends for a long time, and there was
372
00:27:19,560 --> 00:27:20,560
quite a history there.
373
00:27:20,640 --> 00:27:23,100
He didn't believe that the guy wasn't
going to pay.
374
00:27:24,120 --> 00:27:27,460
Riley advises his client to keep the
pressure on.
375
00:27:27,800 --> 00:27:33,580
And so I tell him, I said, Bob, I'm
going to file a lawsuit against you if
376
00:27:33,580 --> 00:27:34,920
don't show me where my money is.
377
00:27:35,580 --> 00:27:41,180
And he said, I'll meet you across the
street in the bank parking lot, and I'll
378
00:27:41,180 --> 00:27:42,240
show you where your money is.
379
00:27:43,440 --> 00:27:48,920
Bonata hops in the passenger's side of
McLean's Jeep Wrangler, and McLean shows
380
00:27:48,920 --> 00:27:52,920
Bonata a single sheet of paper that he
hopes will allay his fears.
381
00:27:53,840 --> 00:27:58,440
This was a settlement statement from a
brokerage house in Chicago.
382
00:27:59,160 --> 00:28:05,880
The house was called Rosenthal and
Collins, and the amount on the clearing
383
00:28:05,880 --> 00:28:08,740
statement was $28 -plus million.
384
00:28:09,700 --> 00:28:11,800
It had a current date on it.
385
00:28:12,220 --> 00:28:14,420
It was on the Rosenthal letterhead.
386
00:28:15,080 --> 00:28:19,000
Bonata asks to keep the statement, but
McClain refuses.
387
00:28:19,440 --> 00:28:21,160
And that didn't smell right.
388
00:28:21,560 --> 00:28:26,380
Bonata needs a copy of the document to
verify it. He acts quickly.
389
00:28:26,800 --> 00:28:31,960
Besides being a contractor, I'm also a
farmer, so it's not unusual to see me in
390
00:28:31,960 --> 00:28:33,180
a pair of bib overalls.
391
00:28:33,460 --> 00:28:38,940
So I'd already taken my cell phone and
put it in my bib overalls. I kind of
392
00:28:38,940 --> 00:28:40,900
leaned over and put the document in my
lap.
393
00:28:41,420 --> 00:28:44,900
And I just reached up and pressed my
button, and I took a picture of it.
394
00:28:45,200 --> 00:28:49,880
This image, taken by Venata's cell
phone, is sent to the brokerage house.
395
00:28:50,340 --> 00:28:52,020
The statement is a fake.
396
00:28:52,520 --> 00:28:55,580
McClain has no account at Rosenthal
Collins Group.
397
00:28:56,160 --> 00:28:57,680
I mean, that's when I knew.
398
00:28:58,120 --> 00:28:59,860
That's when I knew.
399
00:29:01,160 --> 00:29:07,720
On June 29, 2007, Ron Venata files a
lawsuit against Robert W.
400
00:29:07,840 --> 00:29:13,510
McClain. But even as his business
crumbles, McLean's golden image is still
401
00:29:13,510 --> 00:29:16,230
intact at the Country Music Hall of
Fame.
402
00:29:16,870 --> 00:29:21,850
Bob had suggested that, you know, we
might accept a resignation from him.
403
00:29:21,910 --> 00:29:25,710
in fact, I remember the conversation
very clearly. It was like, gosh, you
404
00:29:25,750 --> 00:29:27,930
that doesn't mean he did anything wrong.
405
00:29:28,150 --> 00:29:29,730
I mean, people sue each other all the
time.
406
00:29:30,010 --> 00:29:35,050
So we said, hey, you know, and I
remember the chairman saying to me, hey,
407
00:29:35,050 --> 00:29:36,050
know, we stand by our people.
408
00:29:38,320 --> 00:29:43,500
Meanwhile, the filing of several civil
suits against McLean triggers a criminal
409
00:29:43,500 --> 00:29:44,500
investigation.
410
00:29:45,680 --> 00:29:51,140
U .S. Postal Inspection agents execute
search warrants at McLean's home and
411
00:29:51,140 --> 00:29:57,280
office. I remember thinking this guy was
really a heavy hitter. He had...
412
00:29:58,300 --> 00:30:02,180
The notes from friends were well -known
entertainers.
413
00:30:02,540 --> 00:30:07,940
There were pictures of check
presentations where the checks were
414
00:30:07,940 --> 00:30:12,480
money. The agents are surprised by
McLean's client files.
415
00:30:12,880 --> 00:30:17,800
When we looked at the file cabinets and
saw how the record -keeping was done, it
416
00:30:17,800 --> 00:30:18,559
was shocking.
417
00:30:18,560 --> 00:30:19,640
There was...
418
00:30:20,400 --> 00:30:24,080
Millions and millions of dollars had
been invested here, and they were
419
00:30:24,080 --> 00:30:27,900
on handwritten notes to keep track of
all the finances, which was very
420
00:30:27,900 --> 00:30:32,680
surprising. What's more, it seems that
McLean's collection of trading terminals
421
00:30:32,680 --> 00:30:34,060
was all for show.
422
00:30:34,420 --> 00:30:36,820
He never made any actual trades.
423
00:30:37,400 --> 00:30:41,260
We also looked to see if there was any
kind of equity research or anything that
424
00:30:41,260 --> 00:30:43,510
might... relate to him investing.
425
00:30:43,970 --> 00:30:47,910
And in his office, there was no
documentation. There was nothing
426
00:30:47,910 --> 00:30:50,750
he was even doing research on how to
invest the money.
427
00:30:51,630 --> 00:30:56,630
By now, McLean's investors realize their
savings have evaporated.
428
00:30:57,110 --> 00:31:03,130
Becky Lucensky has invested her father's
inheritance, $600 ,000, with McLean.
429
00:31:03,750 --> 00:31:09,490
I will never forget the day that I
opened the newspaper and saw McLean was
430
00:31:09,490 --> 00:31:10,490
bankrupt.
431
00:31:10,960 --> 00:31:15,840
I had no clue, and I knew that my life
would never be the same.
432
00:31:21,380 --> 00:31:26,220
Retired NFL quarterback Jonathan Quinn
believes that he has close to $1 .4
433
00:31:26,220 --> 00:31:30,520
million, his entire net worth, with
McClain and company.
434
00:31:31,680 --> 00:31:35,280
He's on vacation with his family when he
hears the news.
435
00:31:35,680 --> 00:31:37,600
I'm sitting in a small town in Colorado.
436
00:31:38,480 --> 00:31:40,080
We're looking at little knickknacks.
437
00:31:40,640 --> 00:31:45,100
And I told my wife to stop shopping, you
know, because at the time when I found
438
00:31:45,100 --> 00:31:49,160
out, I had $100 in my pocket and maybe
$800 in the bank, and that's all I had.
439
00:31:49,960 --> 00:31:53,180
In a subsequent deposition in a civil
lawsuit,
440
00:31:53,900 --> 00:31:57,680
McLean's office manager details years of
extravagant spending.
441
00:31:58,520 --> 00:32:03,620
He was spending over $5 ,000 weekly in
personal expenses, American Express
442
00:32:03,620 --> 00:32:05,200
of $10 ,000 to $20 ,000 a month.
443
00:32:05,580 --> 00:32:09,760
He was spending a lot of money on
several different residences.
444
00:32:10,170 --> 00:32:13,450
There was a lot of money going to people
who were not employees.
445
00:32:14,190 --> 00:32:19,570
According to the office manager, more
than a dozen men received cash for
446
00:32:19,570 --> 00:32:23,030
tuition, rent, medical bills, and
entertainment.
447
00:32:23,670 --> 00:32:29,650
Young men that had been students at
Middle Tennessee State University, there
448
00:32:29,650 --> 00:32:33,730
not appear to be any kind of employment
relationship there. And these were
449
00:32:33,730 --> 00:32:35,910
reasonably significant amounts of money.
450
00:32:36,410 --> 00:32:40,310
The office manager recounts what sounds
like Bob's last hurrah.
451
00:32:40,710 --> 00:32:46,170
In May, as the local bank calls in Ron
Bonata's loan, precipitating the
452
00:32:46,170 --> 00:32:52,710
of the Ponzi scheme, Bob throws a party,
spending $5 ,000 in one night on his
453
00:32:52,710 --> 00:32:53,710
young friends.
454
00:32:54,010 --> 00:32:57,770
It's McClain's version of fiddling while
Rome burns.
455
00:32:58,590 --> 00:33:03,690
On July 18th, at the Rutherford County
Courthouse, the gallery is packed.
456
00:33:04,480 --> 00:33:07,500
It was full of other attorneys, and it
was full of other clients.
457
00:33:07,920 --> 00:33:13,160
And these other people that had been
clients of Bob wanted to know what was
458
00:33:13,160 --> 00:33:17,640
going on, and basically there were
little old ladies crying in the
459
00:33:18,600 --> 00:33:22,300
Within two weeks, McLean is forced into
involuntary bankruptcy.
460
00:33:23,360 --> 00:33:29,660
Records show that from 2002 through
2007, McLean spends $49 million,
461
00:33:30,140 --> 00:33:32,840
essentially everything investors give
him.
462
00:33:33,640 --> 00:33:38,480
But at this point, McLean's problems are
not only legal and financial.
463
00:33:39,160 --> 00:33:44,220
Bob was threatening to commit suicide
shortly after this all came out.
464
00:33:44,620 --> 00:33:48,560
And his brother committed him to a
hospital.
465
00:33:49,640 --> 00:33:53,660
To be honest with you, I don't know if
that was a ploy to get him out of some
466
00:33:53,660 --> 00:33:59,500
particular hearing or indictment or if
he was really sick. I honestly don't
467
00:33:59,500 --> 00:34:02,640
know. Is McLean's distress real?
468
00:34:03,390 --> 00:34:08,750
Next on American Greed, for McClain and
his victims, the worst is yet to come.
469
00:34:09,210 --> 00:34:10,670
Why do you see this?
470
00:34:19,989 --> 00:34:21,409
July 2007.
471
00:34:22,210 --> 00:34:26,830
Robert McClain, money manager with the
Midas touch, is broke.
472
00:34:27,389 --> 00:34:29,870
Fifty clients are financially ruined.
473
00:34:30,600 --> 00:34:34,040
and McLean himself is hospitalized under
suicide watch.
474
00:34:34,360 --> 00:34:39,239
The community is shocked by the fall of
its most generous benefactor.
475
00:34:39,520 --> 00:34:45,280
It was a very sad day for the citizens
of Rutherford and Bedford County when
476
00:34:45,280 --> 00:34:52,040
someone who was supposed to be this very
benevolent philanthropist was in fact a
477
00:34:52,040 --> 00:34:53,360
fraud, a con man.
478
00:34:54,820 --> 00:34:57,900
It's no surprise to law professor Sandra
Benson.
479
00:34:59,700 --> 00:35:04,320
She first rang warning bells about
McLean and Company more than 10 years
480
00:35:04,680 --> 00:35:07,680
But she understands why many were
fooled.
481
00:35:08,080 --> 00:35:12,760
Mr. McLean had a pretty long history of
paying the notes on a timely basis.
482
00:35:13,340 --> 00:35:16,900
Investors were getting returns month
after month.
483
00:35:17,200 --> 00:35:21,860
He was doing what he promised he would
do. He was paying the stated interest
484
00:35:21,860 --> 00:35:27,440
rates. And so you see the enticement of
people to roll their notes over or to
485
00:35:27,440 --> 00:35:30,880
keep their money or even to invest more
money with Mr. McClain.
486
00:35:31,840 --> 00:35:35,920
McClain is released from the psychiatric
hospital and the U .S. Attorney's
487
00:35:35,920 --> 00:35:37,640
Office lays out its criminal case.
488
00:35:38,160 --> 00:35:42,960
If McClain goes to trial, he faces up to
33 years in prison.
489
00:35:45,600 --> 00:35:50,640
On September 25th, Bob McClain drives to
Shelbyville.
490
00:35:51,100 --> 00:35:52,260
the town where he was born.
491
00:35:53,060 --> 00:35:56,600
Next to him on the passenger seat is a
loaded gun.
492
00:35:57,780 --> 00:36:01,780
He pulls into the deserted parking lot
of a church and faces a brick wall.
493
00:36:03,800 --> 00:36:05,460
McLean puts the gun to his head.
494
00:36:08,620 --> 00:36:13,060
It was at 8 o 'clock this morning that
the minister found Robert McLean's body
495
00:36:13,060 --> 00:36:14,340
back behind the building.
496
00:36:14,560 --> 00:36:18,620
He had a gunshot wound to the head and
police say there was a suicide note.
497
00:36:20,590 --> 00:36:27,190
When I heard of Bob's death and how he
died, yes, I had not just a little bit
498
00:36:27,190 --> 00:36:28,570
sorrow, I had a lot of sorrow.
499
00:36:28,930 --> 00:36:30,210
I didn't want it for him.
500
00:36:32,010 --> 00:36:37,430
You know, it wasn't, your life is way
more valuable than the money to me.
501
00:36:37,950 --> 00:36:40,730
Even the first mourner is a surprise.
502
00:36:41,190 --> 00:36:46,570
The first person to come to Bob's
brother's home to express his
503
00:36:46,570 --> 00:36:47,570
Ronnie Venetta.
504
00:36:48,080 --> 00:36:53,660
No one wanted Bob to take his life. I
mean, I don't know of anyone that would
505
00:36:53,660 --> 00:36:54,660
have wanted that.
506
00:36:56,200 --> 00:36:59,780
But for the victims, sadness soon gives
way to confusion.
507
00:37:00,460 --> 00:37:05,260
A bankruptcy trustee is in charge of the
estate with the power to find and
508
00:37:05,260 --> 00:37:06,260
recover assets.
509
00:37:07,020 --> 00:37:12,200
The fact is, in Ponzi scheme cases,
there's typically not a pot of gold out
510
00:37:12,200 --> 00:37:13,200
there somewhere.
511
00:37:15,370 --> 00:37:18,910
that the trustee can recover is in the
hands of the victims themselves.
512
00:37:19,610 --> 00:37:25,490
Under state law, the bankruptcy trustee
can seize any Ponzi payments made to
513
00:37:25,490 --> 00:37:27,910
investors within the last four years.
514
00:37:28,350 --> 00:37:34,270
The popular term that's being used today
is clawback, to show the powers of the
515
00:37:34,270 --> 00:37:39,750
trustee when they can go back and claw
back in these transfers that are made to
516
00:37:39,750 --> 00:37:40,468
other people.
517
00:37:40,470 --> 00:37:43,870
The money goes into a pot to be
distributed among the victims.
518
00:37:44,730 --> 00:37:48,470
so that all the creditors could benefit
from that money and not just the
519
00:37:48,470 --> 00:37:51,930
particular ones who had received the
payments from Mr. McClain.
520
00:37:53,170 --> 00:37:54,850
McClain's victims are stuck.
521
00:37:55,570 --> 00:38:02,450
I mean, everybody's been exploited by
McClain, and now some of them I
522
00:38:02,450 --> 00:38:06,110
feel like maybe the term would be
appropriate, double -debt.
523
00:38:06,490 --> 00:38:08,670
I definitely felt like I was victimized
twice.
524
00:38:08,910 --> 00:38:11,410
I felt like you already had it all. I
don't know what else you wanted.
525
00:38:12,250 --> 00:38:17,750
Jonathan Quinn scrimped and saved in an
effort to avoid becoming a cliché, the
526
00:38:17,750 --> 00:38:19,430
bankrupt former NFL player.
527
00:38:20,330 --> 00:38:25,050
Ironically, that's almost what he
becomes, as he barely avoids bankruptcy.
528
00:38:25,570 --> 00:38:30,010
I maxed out my home equity line of
credit, ended up having to sell my
529
00:38:30,190 --> 00:38:34,170
ended up having to pay $13 ,000 that I
really didn't have to sell my own house.
530
00:38:35,510 --> 00:38:40,070
Many are surprised when the clawback
hits McLean's favorite charities, too.
531
00:38:40,710 --> 00:38:45,170
For the Country Music Hall of Fame,
McLean's largesse has become liability.
532
00:38:45,910 --> 00:38:50,290
In order to keep the historic Bill
Monroe mandolin and Carter family
533
00:38:50,710 --> 00:38:55,670
they settled with the trustee and write
a check for $750 ,000.
534
00:38:56,510 --> 00:38:58,930
It's a hardship for us, obviously.
535
00:38:59,390 --> 00:39:05,330
What is very gratifying to us as we sit
here today is that
536
00:39:05,330 --> 00:39:09,630
all of these instruments are on display
in this museum.
537
00:39:10,120 --> 00:39:11,120
Right now.
538
00:39:12,180 --> 00:39:18,820
Middle Tennessee State University is
forced to return $570 ,000 to the
539
00:39:19,160 --> 00:39:23,540
And the name Robert W. McLean is
scrubbed from the School of Music.
540
00:39:24,140 --> 00:39:28,560
For non -profits, Robert McLean's story
is a cautionary tale.
541
00:39:29,020 --> 00:39:32,800
But in many ways, it is also an
unavoidable risk.
542
00:39:33,220 --> 00:39:39,480
If you come into my office and you are
engaged and you want to make a gift,
543
00:39:40,780 --> 00:39:43,120
Do I subject you to a lie detector test?
544
00:39:43,400 --> 00:39:47,220
I mean, do I say, really, is your
financial situation exactly the way
545
00:39:47,220 --> 00:39:48,220
explaining it to me?
546
00:39:48,340 --> 00:39:49,700
It's going to be a short meeting.
547
00:39:50,420 --> 00:39:53,360
I mean, there is this level of trust
that has to exist.
548
00:39:54,300 --> 00:39:58,160
In the end, everyone knows the truth
about McLean's business.
549
00:39:58,580 --> 00:40:01,400
But the man himself remains a mystery.
550
00:40:02,300 --> 00:40:06,040
I still think about Bob a lot.
551
00:40:08,170 --> 00:40:14,670
Because here was a guy who seemed to
care so deeply about what we were doing
552
00:40:14,670 --> 00:40:21,410
here and seemed to be willing to step up
and allow us to do what we're doing
553
00:40:21,410 --> 00:40:22,950
here even better.
554
00:40:24,790 --> 00:40:29,790
It's hard for me to know what was really
motivating him.
555
00:40:30,670 --> 00:40:35,010
I don't think you're going to find
anybody who would, upon reflection, say
556
00:40:35,010 --> 00:40:36,970
they felt like they got to know Bob.
557
00:40:37,930 --> 00:40:41,790
He had a great love of music. If there's
anything redemptive about this whole
558
00:40:41,790 --> 00:40:44,290
issue is that part was really sincere.
559
00:40:46,490 --> 00:40:51,290
Today, Robert McLean's victims say the
experience has made them stronger.
560
00:40:51,570 --> 00:40:58,350
As a breast cancer survivor and a McLean
survivor, I want to find joys in all of
561
00:40:58,350 --> 00:41:03,870
the little pleasures of life and
appreciate the little pleasures of life.
562
00:41:06,540 --> 00:41:11,460
I really don't enjoy sitting here
talking and telling my story of my
563
00:41:11,460 --> 00:41:13,380
life and how I screwed up.
564
00:41:14,660 --> 00:41:16,320
Because I do feel like I'm the one to
blame.
565
00:41:17,440 --> 00:41:22,020
The reason I talk and the reason I tell
the story is because there's plenty of
566
00:41:22,020 --> 00:41:27,060
people out there that might be going
through the same thing.
567
00:41:28,760 --> 00:41:31,760
You know, I've kind of just prayed and
forgiven Bob.
568
00:41:32,320 --> 00:41:35,460
Life does go on and you move forward.
569
00:41:36,080 --> 00:41:39,960
And you heal, and you look at your
priorities a little stronger.
570
00:41:41,440 --> 00:41:46,600
Financially, this devastated my life and
my family's life. There's no doubt
571
00:41:46,600 --> 00:41:47,600
about that.
572
00:41:47,640 --> 00:41:50,680
I'm working through it as best I can.
573
00:41:52,700 --> 00:41:58,960
I feel like that my ship is turning
around like a carrier in the ocean very,
574
00:41:59,020 --> 00:41:59,939
very slowly.
575
00:41:59,940 --> 00:42:04,240
And I think that every day that I last,
it's better for me.
576
00:42:05,740 --> 00:42:10,260
And at the end of the day, whatever
happens, I'll accept it and go on. And,
577
00:42:10,260 --> 00:42:15,660
know, all the important things, you
know, my family, my health, I still
578
00:42:15,660 --> 00:42:16,660
it'll be okay.
579
00:42:18,120 --> 00:42:22,380
The small town of Murfreesboro,
Tennessee, gives McLean its trust.
580
00:42:23,360 --> 00:42:24,600
And he betrays it.
581
00:42:24,900 --> 00:42:28,820
But even now, many give him the benefit
of the doubt.
582
00:42:29,600 --> 00:42:31,700
Did I have anger? I'm sure all of us
did.
583
00:42:32,340 --> 00:42:34,720
I'll bet you're going to find that
people...
584
00:42:35,260 --> 00:42:40,480
If you total up the number of comments
in the anger category and put the
585
00:42:40,480 --> 00:42:44,940
comments that you would group in the I
remember my friendship with Bob, or at
586
00:42:44,940 --> 00:42:49,780
least I remember him as a good guy,
they'll far outweigh the anger category.
587
00:42:50,080 --> 00:42:52,140
The town is that special. It really is.
53087