All language subtitles for American Greed s06e13 Shawn Merriman The Mormon Madoff

In this episode of American Greed, he's
called the Mormon Madoff.

Sean Merriman is a bishop in the church,
the father of four children, and the

head of a thriving investment business,
pulling in millions.

Everybody wants to be a part of an
exclusive club, so you had to get in

That's why he was able to take advantage
of so many people.

But for 15 years, Merriman lives a lie,
ripping off his neighbors, members of

his church.

Even his own mother.

He just said, Mom, I have to tell you
something very bad.

I said, you took all of our money that
we're counting on for retirement?

He said, yes.

Sean Merriman is a scam artist.

And when the truth comes out, dozens of
innocent investors will want to make him

pay. I went home and loaded a .45 and
had every intent of going down and

him away.

On April 8, 2009, in Aurora, Colorado,
just outside of Denver, federal agents

descend on the home of Sean Merriman,
who is under investigation for financial

fraud.

Neighbors and reporters watch as agents
haul out nearly 1 ,000 big -ticket

items. More than 350 pieces of fine art,
including works by Rembrandt and

Picasso. A ski boat.

Motorhome. and seven cars, including an
Aston Martin, sports memorabilia, and

taxidermy. It was like a giant yard
sale. There was just stuff everywhere.

were boxes, there were trailers with
cars on them.

It's an endless stream of luxury items,
all bought with money Merriman stole

from his investors.

He was spending the money as fast as it
was coming in. The seizure marks the

beginning of the end for Sean Merriman,
who has been living a double life.

for 15 years, deceiving his own family,
his church, and his investors,

leaving a path of destruction in his
wake.

But long before Merriman strikes it
rich, he is just a blue -collar kid in a

family of construction workers.

The family is always on the move.

Merriman lives in nine cities in 13
years.

The family moved around a lot. I think
they moved to where the jobs were.

Andrea Merriman was married to Sean for
nearly 20 years.

She remembers how Sean came from humble
beginnings, but always had big plans for

himself.

He just was kind of an entrepreneurial
type, even as a kid, you know, raised

rabbits or did photography.

did all kinds of creative things to make
money.

As a teen, Merriman finds religion and
converts to Mormonism.

He serves an 18 -month mission in the
Vietnamese community in Denver.

Day in and day out, he preaches the Book
of Mormon.

And then, as his mother Sally recalls,
Merriman sets his sights on college.

He liked the nicer, finer things of
life.

And he just set it up so that...

he figured the career in finance would
give him the way of life he wanted.

Merriman enrolls in Brigham Young
University and majors in economics.

In 1987, he meets a classmate, Andrea
Christensen.

He was somebody who wanted to do big
things.

After a whirlwind romance, Sean and
Andrea are married.

We had plans for the future and our
whole lives ahead of us, and that was

start on the path to what I thought was
going to be the fulfillment of all of

our dreams.

The couple moves to the suburbs of
Denver and buys their first home.

In the spring of 1990, Sean lands a job
as a stockbroker at Chatfield Dean.

Sean's dream in life was to become a
stockbroker. And fresh out of college,

got a job as a stockbroker to begin
with.

In the 80s and 90s, Chatfield Dean is
one of the nation's largest penny stock

companies, selling overpriced, risky
stock to unsuspecting investors.

Joe Manzanares, who worked at Chatfield
Dean, recalls the high -stakes

environment. The environment at
Chatfield Dean in the early days, was

high energy, really sell, sell, sell,
get on the phone, dial 300, 400 calls a

day looking for that new customer.

Merriman is one of 100 brokers hired
that year. His salary is 100 %

The pressure to sell is intense.

Brokers log 80 -hour weeks, making cold
calls, pitching shares in small, unknown

companies. New brokers coming into the
business, they're really looking at a

chance to make a lot of money quick.

And there's a lot of pressure to
produce.

And if you're not producing, you're
going to lose your job.

Sean proves to be an excellent salesman.
He quickly gains the trust of his

investors and convinces them to hand
over their money.

And I remember that in his first three
months as a stockbroker, I think he made

between $50 ,000 and $60 ,000.

So he was pretty good at what he did.

But what his clients don't know is that
Merriman is taking shortcuts and buying

stock in companies without their
approval.

His investments usually didn't work out.
He started doing unauthorized trades

with his clients because the pressure to
produce got to him.

And at one time, you know, we had to
look at letting him go from the company

because people were complaining that the
trades he was doing weren't authorized.

Merriman makes a quick exit from
Chatfield Dean and lands a new job with

investment banking firm George K. Baum.

He takes in a $54 ,000 signing bonus and
is back to work.

In April 1993, Sean and Andrea welcome
their first child.

Eight months later, they buy their dream
home, a sprawling five -bedroom house

situated on three acres of land.

For Andrea and Sean, everything seems to
be going according to plan.

But Merriman is hungry for more.

When American Greed returns, Merriman
launches his own investment business,

nearly loses it all when his trades
tank.

He did get in over his head fairly
quickly, which is where I think the

came in.

In 1994, Sean and Andrea Merriman are
like many young couples, full of big

and dreams.

Our plan for our future was to work hard
and raise our kids to grow up to be

good citizens and to make many happy
family memories along the way.

The couple are active members of the
Mormon Church. They are raising a young

son, and Sean is finding success as a
stockbroker.

But Merriman has bigger plans for his
career.

He decides he is ready to start his own
investment firm.

And we talked it over, and he really
wanted to do it. And I'd been taught by

mom to always support your husband in
his dreams, so I thought it sounded like

good plan.

Merriman launches his own money
management company. He names it Market

Advisors. In June, he sets up shop in
the basement of his new home.

and begins drumming up investors.

He'd get up every day and go down into
the basement and shut the door behind

him, and I really wouldn't see him until
he came up for dinner in the evenings.

Merriman is 31 years old and just a
fledgling money manager, yet his company

begins to take off.

Merriman plays to his strengths and
proves to be an excellent salesman.

He was very charismatic. People describe
him as somebody who you wanted to be in

the room with.

Everybody wanted to be around him.

Merriman pulls in $400 ,000 from four
separate investors and is off and

It was easy to like him and easy to
trust him. I think it was easy for him

convince people to give him money.

Merriman devises an aggressive
investment strategy.

He snaps up options on auto stocks,
hoping for a big payday.

But according to Postal Inspector Rob
Barnett, Merriman's bets turned sour.

He invested initially in Chrysler, a
large investment in Chrysler, which lost

fairly quickly $6 ,000.

That was a big hit to him.

And just in general, the market was not
good to him, and he didn't make some

good trades. So he lost a lot of money
initially within the first 12 months.

The losing trades continue.

Merriman is shaken and in over his head.

He has investors to answer to and a wife
and a new son to support.

He probably had a little bit of panic.

of loss, that I can't admit to this.
This is $400 ,000 of other people's

that I'm responsible for, and I can't
admit to losing it. So I can imagine he

was panicked.

He was very stressed about his job and
said he had a big problem, and he was

working on a way to fix it.

And then I just remember a moment when
he came to me and announced, oh, I

figured out a way to solve my...

accounting problem and i said oh good
good for you and that was that was the

extent of it merriman hatches a plan a
way to cover up the loss and buy himself

more time he'll start a new fund and
reel in a new crop of investors but when

made initial losses he had to try to
cover it up so he had to find go out and

find new clients and those new clients
would put money in And that would enable

him to pay off the old clients that were
wanting to withdraw money.

Merriman says his new investment fund
will take a more conservative approach.

He claims to be well -versed in
sophisticated option strategies that

steady returns of 7 to 20 percent.

But he always said, I will use covered
call options to cover the downside so

there is really no risk and you won't
lose money.

Which, come to later find out, was kind
of funny because he never passed his

options exam.

Merriman tells investors they need a
minimum of $100 ,000 to get in. But he

he will make an exception for his
parents, Sally and Jack.

And he told us he was really going for
the big dollar investor.

But because we were his parents, he
would take, if we wanted to invest, with

smaller amount, our much smaller amount.

he would invest it to help make it grow.

Jack Merriman worked in construction as
a pipe fitter until he was 68 years old.

After decades of scrimping and saving
and raising a family, he has $35 ,000 in

his retirement account.

Now the Merrimans hand over that hard
-earned money to their son.

And you really feel, if you cannot trust
your child that you have raised, then

who can you trust?

Each month, Sean mails a statement
showing small but steady gains in his

parents' account.

We got wonderful statements every month
telling us how this wonderful thing was

growing. I was just amazed at how well
he had done.

Really. He must really know finance.

After tapping his family, Merriman works
his connections at church and in his

neighborhood.

And as Assistant U .S. Attorney Tim Neff
discovers...

Merriman frequents classic car shows on
the prowl for new investors.

One of the things he liked to collect
was vintage cars.

And so we started frequenting and going
to various car shows. It was certainly a

field that was ripe for the pickings,
and Sean Merriman knew how to exploit

that.

In 1994, Merriman sets his sights on a
new target, 54 -year -old Tim

Gilmartin. Gil Martin is a commercial
pilot, but it's cars that he is

about. For years, he's been restoring a
1936 Kord.

Now Merriman and Gil Martin strike up a
friendship.

We went to swap meets together. We went
to shows together. Absolutely.

We're good friends.

It's all about the cars.

Merriman tells Gil Martin he runs an
exclusive investment club.

but that it's currently closed to new
investors.

Sean Merriman always played the soft
sell to the investors. Hey, I don't

need your money.

I don't like to necessarily deal with
friends and family, but I'll make an

exception here.

And that whole idea that his investment
fund was something exclusive was in part

key to his success.

I mean, this wasn't going to be open to
everybody, so you had to get in quick,

because if you didn't, you know,
somebody else might step in.

And that's why he was able to take
advantage of so many people.

One year later, Merriman offers
Gilmartin a shot to get in the club.

He said some shares came available.
Somebody opted out of his fund.

Shares came available.

Would you like to invest with me?

His shtick was, if I make money, I get
40 % of the profit.

If I lose money, I don't take any money.

So, okay, that sounds good.

Yeah, it's a hefty price, but he was
doing very well.

Gil Martin and his wife Nancy buy in.
They send Merriman a check for $48 ,000.

Like clockwork, the couple starts
receiving monthly statements showing

consistent gains.

We just let them ride. I mean, we got a
statement every month, and it looked

good. We're making money.

Every month we're going up.

The Gil Martins are watching their money
grow, and they consider themselves

lucky for the chance to invest with Sean
Merriman.

And they aren't the only lucky ones.
Money is pouring into Market Street

Advisors, and Merriman is again off and
running.

But he was successful in starting his
scheme.

He made that loss, covered it up, and
was able to keep going.

I think he had skill and talent in the
area of salesmanship.

He was a very good salesman. He could
sell himself to anyone.

Do it successfully.

Merriman has a fresh infusion of cash.

But instead of investing the money, he
begins spending wildly on himself.

He builds a 4 ,800 -square -foot
addition on the back of his house.

Inside is space for a new office, as
well as a place to indulge in his

I had an exercise room.

It had space for the old cars that he
collected and restored.

It had a woodworking shop in it because
he liked to build furniture.

He was a big hunter. It had reloading
stations in it. Pretty much everything

that was his was down in that building.

Merriman renovates the backyard and
builds a swimming pool, sports court,

ponds, and a gazebo.

He heads to Africa on a game hunt.

He takes his family on a trip to New
Zealand.

All of this paid for with money stolen
from his investors.

You have to be a greedy person to not
only take these people's money, but then

the lifestyle that he lived was so
lavish. It was something that most of us

wouldn't even dream about.

Next on American Greed, a call to serve
in the Mormon church is about to bring

business to a whole new level.

He used his position in the Mormon
church as a bishop to get people to give

money to him for his scheme.

You might say he milked that.

In 2001, Sean Merriman is living a
double life.

His family, his church, and his
community see him as a devout Mormon, a

man, and a successful money manager.

But behind the scenes, Merriman has
taken in millions of dollars from his

unsuspecting clients, and his entire
business is a sham.

He didn't have an investment strategy
because he didn't invest the money. He

just took it and used it to live this
lavish lifestyle.

In 2001, Merriman's image gets a boost
when he is called to serve as a bishop

the Mormon church.

It's a very sacred calling, and there's
a very sacred trust.

Brent Hillier is an elder in the Church
of Jesus Christ of Latter -day Saints.

Members of the church look to the bishop
as their spiritual and temporal leader.

They preside over the weekly services.

They are well thought of and well
respected by the congregation.

Merriman dedicates more than 20 hours
each week to his role as bishop.

And at home, Merriman practices what he
preaches.

We had daily family prayer. We studied
the scriptures with our kids every day.

We had weekly family home evenings where
we would do an activity as a family or

teach our kids a life or gospel
principle such as honesty or love within

family, love at home, serving others,
kindness.

With the sanctity of the Mormon church
behind him, Merriman's business takes

off. And now he's a bishop in the Mormon
church.

That's just even more reason to trust
him.

Word of the devout money manager spreads
around town, and investors are flocking

to Merriman.

Investors like Gary, who asks American
Greed not to show his face.

In 2001, Gary buys a home two doors down
from Merriman.

When his chiropractor touts Merriman's
success, Gary wants to get in to the

exclusive club.

And he says, when you move in there,
I've got somebody I want you to meet.

He's an investment advisor, and
everything he touches turns to gold. You

amazed. He's the nicest guy, he's a
bishop in our church, and everything he

touches turns to gold.

With just a high school degree, Gary
began his career as a tool dealer.

and eventually built a business from
scratch.

When he told you what his strategies
were, they made a lot of sense.

Like so many before him, Gary buys into
the pitch.

He sends Sean Merriman $70 ,000 and
begins to watch in amazement as his

grows. So you can see that if you
average it out, it averages 12 to 20%.

They were getting these statements in
the mail that weren't outlandish. You

know, they weren't earning 80%. They
were regular statements that looked like

they were earning what they should from
a regular investment.

And as time went along, we had amassed a
decent -sized portfolio, enough that

with the earnings that he was
generating, I felt confident enough to

business and retire.

All the money went to Sean.

Gary hands over the proceeds from the
sale of his business.

more than $600 ,000, and prepares to
enjoy his retirement.

I think a lot of investors probably
thought, wow, I've really hit the

here. I'm lucky that this genius, this
guru, will give me an opportunity to

invest with him. I'm not going to ask
any more questions. I'm just going to

trust that he just continues to make me
my millions, when in reality he was

swindling it right out of their back
pocket.

While Merriman is a superstar salesman,
he's not a skilled investor.

He is trading only sporadically and
losing.

He wanted to be a good investor. He was,
so to speak, a legend in his own mind

in the market. But the paper trail and
the actual accounting record for his

track success in the market was abysmal
failure. He could not predict the market

well, and he failed as a stockbroker.

Behind the scenes, new money is not
coming in fast enough.

Merriman is having a hard time keeping
up with the redemptions and funding his

lavish lifestyle.

The strain is beginning to show.

In 2001, Tim Gilmartin has an unsettling
experience when his wife asks for a $10

,000 withdrawal from their account.

She takes the check, deposits it in that
bank.

And they call up and said, there's no
money in this account. The check

And imagine the stress that he must have
been under to know when person A wanted

his or her money, I've got to go out and
find somebody else.

But Merriman assures Gil Martin it is a
bank error. And two days later, the

check clears.

For now, Merriman is managing to keep
the business afloat.

Ever the salesman, he continues to bring
in new money.

He knew how to continually get the
confidence and trust of individuals.

So it was an ultimate fraud, and he was
excellent at doing it.

Up next on American Greed, the money
continues to flow in, and Merriman's

spending kicks into high gear.

If wanting more and more and more is
what you call greed, it's fair to say

Sean Merriman was a greedy, greedy man.

By the early 2000s, Sean Merriman has
weathered the ups and downs of his

investment scheme and appears to be back
on top.

The esteemed Mormon bishop runs the most
sought -after investment fund in town.

He has dozens of investors from multiple
states, and he is living big on his

investor's dime.

I mean, this guy was living a life that
most of us will never get to live.

Merriman takes his family on trips
around the world.

In 2001, they traveled to Africa.

The next year, to England.

Our family got to go to a lot of fun
places.

We were able to go to Turkey.

We were able to go to Russia and Poland
and Denmark and Sweden and Norway and

Finland. We cruised the Panama Canal.

We saw many, many islands in the
Caribbean. We went pretty much anywhere

a goal to go.

And Merriman begins snapping up cars, a
1937 Kord, an Aston Martin with a price

tag of $125 ,000, and a luxury motorhome
for half a million dollars.

And he builds an impressive taxidermy
collection from his wild game hunts. He

went to New Zealand and hunted. He went
to Alaska and hunted. He went to Russia

and hunted bear.

He went to Cameroon, Ethiopia, Zambia,
Zimbabwe, South Africa, Tanzania. He

traveled anywhere where there was big
game to be had, and then he would have

trophies stuffed or mounted and
taxidermied, and he'd put them down in

building. So I always thought that his
spending was way above and beyond what

was necessary, but that was what he
liked, and I thought he was working

But Merriman has no legitimate source of
income.

Everything he buys and every exciting
adventure is paid for with stolen

money. But Andrea is kept in the dark
and never suspects her husband is up to

good. I got the same statements that
everybody else did. So over time, I

our money get to like the $10 million
level.

So I thought we were prepared for the
future, that we had a good amount saved

that we could live off of, that we could
weather a lot of financial storms.

By 2005, Merriman has discovered a new
passion, collecting fine art.

Merriman shells out millions of dollars
and acquires an astounding 350 pieces,

including etchings by Durer and
Rembrandt.

He had quite a collection.

And I just always used to look at them
and be amazed that they had survived

many centuries intact.

And there they were, hanging on the
walls of our home.

In March 2008, Merriman's collection is
displayed in Denver in an exhibit called

The Renaissance of Faith in Art.

On display are 200 original works
depicting the life of Christ.

He wanted to build a Christ -centered
collection of art.

And it was Rembrandt etchings, old
master prints, an original illuminator's

Bible, all kinds of religious -themed
artifacts.

More than 30 ,000 visitors come to see
the exhibit, and Merriman is hailed as a

hero for making such renowned art
accessible to the public.

Sean Merriman was there, and he
pridefully watched as individuals would

his hand and admire the collection.

It's hard to believe that when you think
about the show, it's all based on a

fraud, and the purchase of these items
is all based on swindling of investors.

For now, Merriman is riding high.

But when American greed returns, with
the markets in free fall, investors

demanding their money back.

But as people started asking for their
money, Sean Merriman didn't have the

money because he didn't invest it. He'd
spent it.

on his lavish lifestyle, there was
nowhere for him to go.

In 2008, the nation's economy has fallen
into a recession.

Breaking news all over Wall Street this
morning. This is a special early morning

edition of Squawk as Lehman Brothers
files for bankruptcy. The stock markets

plummeting. Unemployment is climbing at
a record pace.

And investors everywhere are nervous.

But for Sean Merriman, it's business as
usual.

In July, he snaps up a ski boat.

One month later, he buys a five -bedroom
cabin in Idaho.

He didn't show any signs of stopping.
This was a guy who continued to want

and more.

While the markets are getting hammered,
Merriman's statements continue to show

consistent gains.

And some investors are growing
suspicious.

He's still making money, and the S &P
100 is down over 45%. Tim

Gilmartin has been investing with
Merriman for 13 years.

He has watched his investment increase
fourfold.

But now, he and some friends from the
car club have an uneasy feeling.

And one of them asked me, Tim, what do
you think is happening here? Look, the

market's going down like crazy, but
Sean's still making money.

Maybe we should do an audit.

And I said, yeah, that's a good idea,
you know.

There were some vocal investors who were
demanding a better, more independent

accounting as to how his funds were
managed and what their track record was.

And the more they asked for that
accounting, the more he resisted.

Investors are hounding Merriman and
demanding their money back.

He panicked because people needed money,
and they were coming to him to withdraw

their investments.

He didn't have it.

And his world crumbled quickly.

Merriman's accounts are empty.

And with no new money coming in, he
can't keep up with the pace of

He takes out a loan on his house in the
amount of $940 ,000.

That buys him some time.

But the fraud that Merriman orchestrated
is about to collapse.

He was in a pressure cooker.

Sean Merriman really felt like he had
been cornered. I don't think he had

another option. I think the walls were
closing in on him so fast he had no

choice. Merriman realizes he can't keep
up the charade any longer and weighs his

remaining options.

He talked about placing the fine art in
a briefcase, fleeing to Europe, and

selling these fine pieces of art over
the years and remaining as a fugitive.

He mentioned that he considered, but
ultimately rejected, committing suicide,

which left him with his ultimate card
that he played in our case.

to surrender to federal authorities,
plea for mercy, and try to get the best

deal he could.

On March 18, 2009, Merriman turns
himself in to federal authorities.

In my 20 years, I'd never seen an
instance where a crime of this magnitude

revealed by an individual raising their
hand and admitting to authorities, I've

committed a horrible crime, I need to go
to prison for a long time. That's how

the case began.

In a 90 -minute interview, Merriman
details how Market Street Advisors was

con. But I was actually struck at how
matter -of -factly he recited the facts

and his involvement in this particular
case.

Merriman brought in 68 investors from
multiple states.

And over the course of 15 years, he took
in more than $21 million.

Now, the money is spent.

And I got the impression from him that
on some level he was absolutely

of living this lie.

Many of Merriman's burned investors were
family, close friends, neighbors, and

fellow Mormons.

To the people who lost money, it was
absolutely the ultimate betrayal.

It was a friend. He would go to
barbecues with his clients.

He would take them on trips.

He would go to church with them.

Talk about somebody who just betrayed
everything that you ever believed in.

That's what they say Sean Merriman did.

After confessing, Merriman is allowed to
walk free while the government builds

its case.

He returns home to break the news to his
wife.

And he said, I need to tell you that my
company, Market Street Advisors, is a

sham. And that was the beginning of the
end for me.

That's where it all ended.

In an instant, Andrea discovers her life
was based on a series of lies.

I just sat there. I was so in shock. I
couldn't react either.

And then after he told me that he would
be going away and I'd be left alone to

raise our children and that he was
sorry, he started to cry.

And that's when I knew it had to be
real, that it must not be a joke.

I just could not comprehend it.

All I could think of was, I need to get
away from this man.

I just felt like he was a stranger just
in an instant, in a moment.

He was someone that I didn't know, and I
couldn't imagine that I'd ever known

him.

But Merriman isn't done.

He picks up the phone and begins dialing
each and every one of his victims,

including his own mother.

He just said, Mom, I have to tell you
something very bad.

I have...

Been running a Ponzi scheme. I took your
money.

And that's when I said, how could you?

I said, you took all of our money that
we're counting on for retirement?

He said, yes.

And it's like, then what went wrong? Why
would you do this?

Sally and Jack's original investment of
$35 ,000 had grown to $178 ,000.

Now they learn that money has vanished.

And it was just...

You're sick.

You are sick to your stomach.

And you think, how could he?

And he said, I feel I will only get five
years because I am turning myself in,

and I will help them as much as
possible.

It was just a total shock that
everything was gone.

For Tim Gilmartin, his suspicions are
now confirmed.

Merriman's betrayal is hard to
comprehend.

How could you do that?

to your family, your friends, car guys,
everybody.

How could you do it? So I don't know how
he slept at night. I really don't.

Many investors, like Gary, are
completely devastated.

He just said, I notified the feds on
Monday, and there is no money.

There never has been.

And this has all been a fraud and a
sham.

Gary had invested his entire life
savings with Sean, more than $800 ,000,

which had grown to more than $1 million
on paper.

Now it is all gone.

The deception is more than Gary can
bear.

I went home and loaded a .45 and had
every intent of going down and blowing

away.

But when I got to the front door, I
realized that would put me in prison

and I'd miss my family.

The investors were outraged. They
frankly, you know, wanted blood for Mr.

Merriman. When American Greed returns,

Sean Merriman will have his day in court
and come face to face with his outraged

investors. I want to see that son of a
bitch go to jail.

In March 2009, the news of Sean
Merriman's scam spreads quickly.

No one, it seems, suspected Merriman
capable of such deceit.

You begin to wonder if the man has a
soul or a heart to engage in this kind

just callous conduct.

On April 8, the team of federal agents
arrives at Merriman's sprawling home to

begin seizing his assets.

But even in their wildest dreams, agents
could never have imagined the treasure

trove they were about to uncover.

That part was overwhelming.

All of us are amazed and just in shock
that there was so much stuff.

Packed into the building behind his
house, investigators discover seven

A 22 -foot ski boat, a luxury motorhome,
a Harley Davidson and 13 dirt bikes and

dune buggies, a taxidermy room, 34
antique weapons, and nearly 200 pieces

of sports memorabilia.

And artwork is piled up to the ceiling,
more than 350 words.

We were just dumbfounded at the amount
of the stuff that he had accumulated and

bought. Neighbors look on as the items
are tagged and hauled away.

So he wasn't behind bars.

And his neighbors, who were investors,
the people he'd taken advantage of, sat

on their front porch and watched this
lavish lifestyle, all this stuff just

out of this place.

You want to talk about the ultimate
insult. It must have been like rubbing

in the wound.

After five months of walking free...

Merriman is finally arrested and charged
with one count of mail fraud.

He pleads guilty and on September 14,
2010, stands in a packed courtroom to

learn his fate.

Thirty investors are on site, many
sharing with the court their own stories

grief and devastation.

I wanted the judge to consider the
ramifications of what he did and to make

pay for as long as he could.

Sean Merriman had told his mother he
expected a light sentence since he

himself in.

Sally, who was defrauded herself, shows
no mercy to her son and writes a letter

urging the judge to make him pay.

I recall thinking to myself, wow, that
gives you some insight as to just how

deep and how bad this crime was.

When his very own mother wants a heavy
sentence for her son.

Sean Merriman is sentenced to the
maximum.

12 and a half years in prison.

For many investors, that is not long
enough.

But for Merriman's four children, it
seems unimaginable.

All I could think of was, my son's going
to be 28 the next time he sees his dad.

That's my oldest.

And my youngest will grow up without his
dad, and he'll be 15 or 16 before he

really gets to meet him.

They lost their whole lives.

At a very young age, I think they have
had to live through something that

should ever have to live through.

The betrayal runs deep.

Andrea and her kids have lost countless
relationships with friends and family

who were scammed by Sean.

And they have been the target of many
accusations, despite being cleared of

wrongdoing. Was Andrea Merriman part of
this scheme?

That was one of the first questions we
had and the first question we looked

into.

And there was nothing anywhere that
indicated that she knew what was going

It was a difficult time. There were a
lot of people angry at us. I felt bad. I

felt guilt that I was married to someone
that would do something like that.

Looking for a fresh start, Andrea files
for divorce and moves to Utah where she

finds a job in public relations.

She eventually remarries and builds a
new life.

But I have chosen to move on every
single day since then. So I think that's

key to surviving hard things is choosing
to carry on and choosing to make a new

life out of what you're left with, even
if you're not left with very much.

The luxurious lifestyle Andrea and her
children once knew is gone for good.

But the family has found happiness again
in a simpler way of life.

Sometimes you have to have something bad
to put your life in the right

perspective. And for me, I grew up with
everything I wanted and was really

worried about stuff like that. But now
I've learned what's important and I'm a

better person because of it.

Sean Merriman has lost everything.

His family, his fortune, even his
religion.

Once an esteemed bishop, Merriman has
been excommunicated from his church.

He violated the trust that was given to
him in that position.

He was excommunicated within just a few
days.

That's the most severe action that can
be taken in the church.

The tragedy of this whole thing is the
talents and the intelligence and the

potential that he had to do anything. He
could do so many things and

selfishness and greed and pride.

took all of that away, and now he's left
with nothing.

Absolutely nothing.

He's alone in a cell. No family, no
money, no home, no cars.

Nothing.

But for Sean Merriman's victims, many
had their dreams, their future, and

security stolen from them.

Many victims lost everything.

They lost their retirement savings.

They lost kids' and grandkids' college
funds.

Some of these folks were retired.

Well, they had to go back to work. They
had to find more jobs because they lost

everything. Many of Merriman's assets
were auctioned off.

But authorities say investors will be
lucky to get back pennies on the dollar.

He's a sociopath.

He doesn't care about anything but Sean.

He doesn't care that you've invested
your complete life with him.

After losing more than $1 million in the
scam, Gary couldn't make his mortgage

payments and eventually lost his home.

I hope I never have to look him in the
eye again.

And if he dies in prison, yay.

He got what he deserved.

Sally and Jack Merriman lost more than
their retirement.

The hurt stays.

And it's the betrayal that...

Of the parents, that is the worst.

In a way, it is the death of your child.

The child as you knew them is gone.

You can't open that door again and let
him back in.

A con artist will be a con artist.

And no, the best way to protect yourself
is to have nothing more to do with

them.

Sean Merriman sits in a prison cell in
South Dakota.

He is scheduled to be released in August
2020.

He just became a really master thief.

But master thieves do get caught.

And he did.