Original subtitles

In this episode of American Greed, game on.

Investment managers Joel David Salinas and Brian Bjork make millions selling

bonds in Houston.

In this business, trust me, the smoother talkers, they raise a lot of money.

They net an all -star roster of clients, including basketball coaches from major

universities across the country.

You saw these prominent figures, and if they're happy, then why aren't you

happy? Jump in and join the fun.

But now the feds are crying foul because this $39 million bond game is

rigged. And later, fact and fiction blur when 26 -year -old rapper Eric

Chicago Blaxigan Jaglisik says he's producing a Hollywood movie.

I mean, $100 bills ain't, to me, I mean, it grows on trees. Now Jaglisik tells

his story to American Greed.

I got a half a million dollar house. I'm making a movie at a young age and I

don't work a day in my life.

And I have the American dream.

But when the deal falls apart, investors lose a fortune.

The guy was just a pathological liar. He just lied about everything.

July 15th, 2011.

Joel David Salinas, a 60 -year -old investment manager from Houston, Texas,

been missing for days.

He's finally located on a jet ski 30 miles away in Galveston Bay.

Mr. Salinas actually takes his jet ski out into Galveston Bay and rams it into

pylon in the middle of the bay.

seemingly attempting to do harm to himself in some capacity.

Ultimately, the Coast Guard rescues him and brings him back to shore, and he's

voluntarily admitted into a hospital for examination on that Friday.

Salinas is desperate.

He's darting a federal investigation into a $39 million scam he's accused of

running for more than 20 years, and the feds are closing in.

Scott Eden writes about Salinas for ESPN the magazine.

You can see him doing good, and you can see him doing very bad, and obviously

the one side won out.

Salinas grows up in Houston.

In his 20s, he turns to the greed side.

He's arrested for credit card fraud and served six months for forging his

mother's name on checks.

Hoping for a fresh start, he moves to Corpus Christi and opens an insurance

company. He finds success there. He works with local advocacy groups and

considers a run at politics.

He was a rising star.

People thought he might be a mayoral candidate, eventually a congressman.

But plans to run for city council in 1983 crumble as his past comes to light.

He's also accused of misappropriating $92 ,000 from the local Big Brothers Big

Sisters program.

And his public career was ruined, but he somehow struck a deal with the local

authorities, and the charges were dropped, and he just agreed to pay back

portion of what he had allegedly misappropriated.

Disgraced again, Salinas packs up and moves 200 miles northeast to the Houston

suburb of Friendswood.

hoping for yet another chance to wipe his slate clean.

In 1987, Salinas creates a series of businesses he ambitiously names the J.

David Group of Companies.

It sounds like it's, you know, this white shoe, old money, you know, firm.

In reality, it's a storefront in Friendswood, tiny staff, basically a

neighborhood kid that he hired to staff it with him, relatives.

Salinas is an avid college sports fan, and with the J. David Group, he can

indulge that passion.

He begins selling insurance policies to the athletic departments of local

universities. He winds up creating a business that sells type of liability

insurance to universities that protect them from those liabilities that might

occur when kids maybe get hurt.

But Salinas has bigger plans than selling insurance, says Assistant U .S.

Attorney Jason Varnado.

Despite having no credentials to do so, he simply marketed himself as a

financial advisor.

Salinas targets his existing roster of contacts, offering stocks and other

investments. But his calling card is long -term corporate bonds.

He would say...

I am able to procure corporate bonds at discounted rates because I buy so many

in bulk.

Because of that discount rate, you're going to get an even better rate of

than you might otherwise get.

Salinas slowly builds a loyal base of investors with steady 6 % to 8 %

says Securities and Exchange Commission attorney Timothy McColl.

Nice, safe, conservative.

He didn't promise above market rate.

But what he did promise was consistency. In other words, when the market goes

down, you're going to be fine. When the market goes up, you're going to be fine.

Salinas has a strong personality and a passion for college sports.

That and his athletic insurance connections will propel him to new

he meets men's basketball coaches Scott Thompson and Gray Giovanni at nearby

Rice University.

He was their friend first, they thought.

And then second, they said, oh, he's a money manager, so why don't I go, why

don't I put my money with this person that I can, he's already my friend, so I

can trust him.

When they become clients, it opens a door for Salinas into a very private

Coaches are moving from school to school, and as each guy would move from

to a different school, they would introduce Salinas to these new coaches

new staff, and his circle just widened over the years.

None of the coaches American Greed contacted who knew Salinas would speak

record. But Scott Eden discovers that Salinas used their trust and friendship

line his pockets.

Over the next two decades, more than a dozen of the biggest names in college

coaching will invest millions with the J. David Group.

Billy Gillespie, Mark Few, Scott Drew, Doc Sadler, Lou Dolson, of course.

Those are just some of the guys that became clients of Salinas.

Flush with success, Salinas becomes heavily active in the Houston community.

He forms a youth basketball league in 1992.

And five years later, he helps create the not -for -profit Houston Athletics

Foundation. Houston Athletics Foundation played a fairly large role in

supplementing the athletic budget at the University of Houston.

And keep in mind, as he did that and as that was set up, he gained access to a

growing number of, again, prominent Houston businesspersons and people in

athletic community here locally.

Salinas' business is booming, mostly because of the steady returns from the

corporate bonds he's offering and the famous coaches he's rubbing shoulders

with. He had nice homes. He drove a Bentley.

He owned a Porsche.

And he was living well off of other people's hard -earned money.

Next on American Greed, investors have a confrontation and learn there's a dark

secret behind the Midas touch.

I was getting pretty livid with him.

I just knew for a fact that he was lying to my face.

J. David Salinas has spent almost 10 years selling corporate bonds to a

roster of college coaches and clients with deep pockets.

Each year, he throws lavish final four parties that further cement his

relationships and reputation with coaches across the country.

He wanted to be a mover and a shaker in the college athletic community, and he

liked to be seen as the big man on campus.

But Salinas has been hiding a problem he can't ignore forever.

Mr. Salinas was not registered with the commission.

He was not registered. He was not a registered representative of a

broker dealer.

To stay out of trouble, Salinas needs someone with the right qualifications.

And in 1995, he finds Brian Bjork.

He hires Mr. Bjork, who actually does become a registered investment advisor.

Unlike Mr. Salinas, who never was a registered investment advisor, never had

credentials to do so.

Bjork also shares his boss's love of college basketball, and soon he's become

integral part of the J. David Group.

He started at the bottom, and fairly soon thereafter, he continued to rise to

become vice president and really Mr. Salinas' right -hand man.

Eleven years later, in 2006,

Salinas consolidates much of the J. David Group into a new company he calls

Select Asset Management.

He promotes Brian Bjork to chief executive officer.

The company moves into a Houston office complex, promising clients they'll have

a better variety of investment opportunities.

They offered the bonds. They offered stocks.

And they also offered securities or investments in these two private funds

they held within select asset management.

Salinas uses his starting lineup of coaches to aggressively sell the new

venture. It's potent advertising.

He unequivocally utilized and used to his advantage his relationships with the

basketball coaches to secure other investors.

Scott Jackson is a Houston -based portfolio manager.

He's never worked with Salinas or Bjork, but his 89 -year -old grandmother has

known them for years.

She's invested nearly a million dollars with J. David Group and Select Asset

Management, most of it in their conservative corporate bond program.

They were doing fixed income investing and, you know, trying to generate that 6

% to 7 % return was what they were telling her.

She trusts Salinas and Bjork completely and has never had a reason to doubt

them. If she needed $50 ,000, they'd send her $50 ,000.

I mean, they were extremely nice to her, and she loved calling them.

And when the economy collapses in 2007, her family is happy to see those

accounts continue to grow.

But after three years of steady gains, despite the economic downturns, Scott

Jackson begins to have doubts.

I was skeptical on that whole.

how he bought that, how he was getting those nice returns.

Jackson doesn't manage his grandmother's finances, but he is curious what Brian

Bjork's secret is.

In November 2010, he calls a meeting with Bjork. The money manager explains

they are acquiring the corporate bonds at substantial discounts of as much as

40%. You know, I was like, okay, but no one will ever...

Be selling a bond that's currently trading, you know, say 140 and sell it

at 100.

No bank institution would be that dumb to make that type of transaction.

Tempered flair as Jackson realizes that Bjork is evading his questions.

I was telling him, Brian, I don't believe you. I just don't see how this

And I believe you're a liar. You are lying to my face right now.

After the meeting, Jackson begs his family to get his grandmother's money

from Select Asset Management.

But his family trusts their old friends, Salinas and Bjork.

They decide to stay put.

I wish I was a little more forceful on getting their money out, but hindsight's

20 -20, and it's a lot easier said than done.

Scott Jackson isn't the only one asking questions about these too -good -to -be

-true bonds.

In June 2010, a routine Securities and Exchange Commission exam reveals some

troubling inconsistencies at select asset management.

Our examiners uncovered some red flags, commingling of investor money into a

common bank account, using investor money to make loans to close associates.

Investigators will discover that nearly $2 million are being moved around the J.

David companies disguised as loans.

Mr. Bjork was loaning that money to companies that were controlled by Mr.

Salinas, a very close associate of his and someone who you would expect would

get a sweetheart deal.

Bjork tries to hold off the SEC for a year.

But in July 2011, he turns on his boss to save his own skin.

His lawyer calls the SEC to say Bjork's had a change of heart and is willing to

play ball and give up explosive information about J.

David Salinas.

Well, guess what?

There's been this bond program started by Mr. Salinas.

And Mr. Bjork has some suspicions that these bonds don't even exist.

Those corporate bonds Salinas has been selling, the backbone of his 20 -year

-old investment companies, aren't real.

The bonds he was supposedly buying were fake. He wasn't buying any bonds. He was

just telling people that. And when people expected a return on that

he would use somebody else's money to pay them.

Despite what he's been offering for years to coaches and other investors,

Salinas has never bought a single corporate bond.

It was at that point that events began to move very, very quickly.

In a flash, it's all gone.

Friends, money, his reputation, and the college coaches who meant so much.

Devastated, Salinas disappears to his Galveston beach house just steps ahead

a federal investigation.

Next on American Greed, Salinas finds himself on a jet ski in Galveston Bay.

contemplating the unthinkable.

July 15, 2011.

Joel David Salinas is ducking federal investigators.

But when he's found on his jet ski, he's run out of options, says Secret Service

Undercover Special Agent Michael.

We figured he was desperate, he needed somebody to talk to, and who better to

talk to than law enforcement officers?

Investigators are eager to confirm suspicions that Salinas has created a

million investment fraud centered around the sale of non -existent corporate

bonds. Salinas essentially was guilty of running a massive corporate bond Ponzi

scheme that victimized a lot of people and ultimately lost a lot of people

life savings.

Salinas has taken his jet ski out to end his problems once and for all.

But at the last moment, he gets cold feet.

He admits that he tried to commit suicide the night before by trying to

the sea dew into a pylon or a portion of the ridge.

Uninjured, he's taken to a hospital for evaluation.

But hours later, he checks out and rushes back to his friend's woodhouse.

where investors are already waiting for him.

So there's like this posse of angry clients waiting to confront the guy and

out what's going on.

Salinas dodges them and hides in his house until Sunday morning.

So he's alone in the house, and that's when it happens.

This time, Salinas is resigned to his fate.

He goes to his backyard pool.

slips into the deep end and fatally shoots himself underwater.

The only reason you would do that would be to muffle the sounds and no one would

hear it. And no one did.

Salinas' body is discovered within hours.

His abrupt death changes the focus of the investigation immediately, says FBI

Special Agent Kendall Hopper.

It appeared from all the evidence we had at that time that Mr. Salinas was the

main person behind the corporate bond.

But we wanted to see if anyone else was also involved in his fraud.

They turned their attention to right -hand man Ryan Bjork, the person who had

originally clued them in to the fake bonds.

But Bjork has shared another surprise.

a note he claims he found before the suicide that was written by Salinas.

In the note, Mr. Salinas accepted responsibility for everything to do with

corporate bonds and exonerated Mr. Bjork and others.

The note is authentic, but is it true?

Agents Hopper and Michael will spend a year pouring through records seized from

Salinas' companies and home to find that answer.

It took a lot of time to go through everything and put together the pieces.

At no point in time was Mr. Bjork forthcoming in our investigation.

Of particular interest are records from the University of Houston booster

organization Salinas helped create called the Houston Athletic Foundation.

They discover Brian Bjork has been treasurer since 2004 and has enjoyed

limitless access to its accounts.

H .A .F. has more than $2 million invested in Salinas' companies.

But their accounting records don't make sense.

The files were not kept in a logical manner.

Their bookkeeping was poor at best.

One day, Agent Michael is in his office and Agent Hopper is in hers.

Over the phone, they try once more to reconcile the Houston Athletic

books. We were both on the same date.

for the consolidated statement, and our numbers weren't jiving.

We noticed that the total dollar amounts were different.

And then it dawned on us that there was actually two sets of books.

While Joel David Salinas has been selling fake bonds, his trusted

Brian Bjork, has been running his own scam within a scam.

We discovered that Mr. Bjork had been taking checks that investors had made

to J. David Financial Group and then using those bonds for his own.

personal expenses.

He's raided $550 ,000 from HAF's accounts and stolen nearly another

dollars from a very personal list of clients.

It's included his mother, his grandmother, other family members.

You had David Salinas sitting in one office running a Ponzi scheme, and you

Brian Bjork sitting right next door in his office running his own Ponzi scheme.

neither of which individual knew what the other was up to.

In 2013, faced with this evidence, Brian Bjork agrees to plead guilty to wire

fraud and is sentenced to four years, four months in prison.

We knew we had him dead to right.

There was no weasel on his way out of it.

Today, the Selena scandal is best known for rocking the NCAA and costing more

than a dozen coaches millions of dollars.

But at least 100 other investors saw more than $30 million of their life

disappear as well.

In addition to the prominent figures, you know, we had the everyday citizens

that just invested their entire life savings and trusted Mr. Salinas and

up being victimized and lost everything.

Scott Jackson is still furious that Joel David Salinas and Brian Bjork stole

nearly a million dollars from his grandmother.

I look at Brian Bjork and David Salinas, and I find them to be scums of the

earth. But Brian Bjork thinks about that every day he's in prison, and David

Salinas took the easy way out.

Weeks after Joel David Salinas' suicide, a court -appointed receiver is assigned

to recover whatever assets remain for investors.

The biggest surprise is that Salinas stockpiled $18 million worth of life

insurance policies since at least 2010.

The receiver is able to recover most of this money despite suicide exclusion

provisions.

And as a result, the receivership estate had a source of funds to pay back

victims. It may be upwards of even 40 cents on the dollar, which in my

experience is an extremely...

Good recovery in these cases.

Turns out, Joel David Salinas, the man who began his career as an insurance

salesman, planned ahead for the end.

Freedom of speech!

Next on American Green, Eric Jaglisik is an aspiring suburban rap star.

You better take me seriously.

You better play my shit before my city comes out.

With Hollywood Green.

A rapper needs a basketball court.

I need a pool.

Girls like pool.

Agent Bill Harmoning with the Illinois Securities Department has spent more

20 years chasing financial predators.

But in October 2006, he lands a case like no other when a frantic investor

him about a $1 .5 million movie deal gone sour in Chicago's southwest

I knew within 10 minutes of talking to him that he'd been defrauded, had all

red flags.

The story was just complete silliness.

The alleged mastermind, Eric Jaglisik, has recently posted this video online.

This is my recording studio. This is where I make all my beats on my track.

Jaglisik's calling himself Chicago Blaxican, and he's been trying to

rap career.

Gangster? I'm the one doing things. I'm staying straight up.

Jiglicic admits he's never worked a steady job, but he claims rapping and

producing beats makes him enough money to fill this video with all the toys

showing off.

See, a lot of people don't realize this. I'm pretty good at music.

I'm pretty good at producing.

I'm pretty good at the engineering.

But Harmony says the video is actually key evidence in the ambitious fraud

Jaglisik executes. He ended up with over a million dollars in a very short

amount of time, and he spent it in a very short amount of time, and he lived

that lifestyle that he dreamed of living.

I mean, $100 bills ain't, to me, I mean, it grows on trees.

Months earlier, Jaglisik has made an unlikely new friend, 44 -year -old Brian

Palatowicz.

He owned an audiovisual equipment company.

Jiglicic would come into his business to have copies of his CDs made, and that's

where this plan was hatched.

According to Faletovich's attorney, James McGurk, Jiglicic's not talking

Instead, he says he's producing a movie called The Record Deal with the help of

a major Hollywood star.

The story that Eric presented to Brian was that Eric Jaglisik was purportedly

involved in the movie deal with Adam Sandler. It's unclear whether Sandler is

supposedly starring in or co -producing the film, but Jaglisik says the story is

about Chicago Blaxican.

The whole movie took place about me. It's about a rapper and a producer who

great songs, but he doesn't want to sign to a record label.

The problem is, Jaglisik needs money to keep the film in production.

No special stuntmen.

No great background. No cars crashing.

No need to shut down a city.

Just follow me around. Follow my life.

Balotovich buys the story. He gives Jaglisik more than $150 ,000.

and hands him keys to a new Cadillac Escalade as well.

We're not quite sure why Palatovich agreed to do this. He seems to be a

relatively intelligent man. He's a business owner.

But for some reason, he fell into this, and Eric just had him on a hook like a

fish.

Jaglisik says the video he soon creates is a key scene from this film.

People think I'm crazy for having sharks in my living room, but...

Now that, again, people work 40 hours a week for a little measly paycheck, so

what do they know?

But a Cadillac, sharks, and a house full of electronics soon eat through the

money Faletovich has provided.

McGurk says within weeks, Chicago Blaxican begins pressuring his client

money to complete the film.

Eric. Got everything he could out of Brian.

He had no more credit, he had no more cash, and so he had to get more, so he

to get Brian to bring in other people.

Balotovich turns to his family and friends, asking them to invest in this

Sandler movie.

He doesn't mention Eric Chicago Blacksican Jaglisik's name, but he does

a short -term investment, the payout will be incredible.

They would get their money back plus anywhere from 200 % to 400 % interest.

One of the people Falotovich hits up in the summer of 2006 is his lifelong

friend, Alan Bruce.

Bruce soon pulls together $28 ,000 to invest in the deal.

I've just seen the chance to double it. You know, that was what the theory was,

is double it or maybe even more.

I said, this can't get any better than this.

Bruce has known Valatovic since they were kids.

He says he had no reason to doubt him, even if the story sounded unlikely.

He's an honest guy. I know that.

I never had any problems with him.

Soon, Bruce is delivering the money in cash to Valatovic.

It was everything I had. I mean, I never had that much money ever.

I pretty much lived check to check all the time.

I'm not here for a long time. I'm here for a good time, is my theory.

The deal is based completely on trust in Ryan Falatovich.

This is a case where there were no contracts. There was no prospectus

the investment. There was absolutely no paperwork that I know of. It was all

done word of mouth on a handshake.

But Eric Jiglicic is the only one who will benefit from this unshakable faith.

Next on American Green.

Chicago Blaxican dives into a million -dollar home makeover.

I tricked that house. I pimped it out. I had to get it all ready for the movie.

Want to live the life of a rapper?

See more clips of Chicago Blaxican's video at americangreed .cnbc .com.

Feeling greedy?

Want more than your share of behind -the -scenes dirt?

Follow us at American Greed TV on Twitter.

We'll be right back. Thank you.

A friendly game of cards in 2006 turns business when Al Bruce mentions another

high stake game he's playing.

It's an Adam Sandler movie called The Record Deal that he says is currently

being financed in the Chicago suburbs.

We just started talking about it and everyone kind of got caught up in the

nonsense of thinking we were going to get rich quick.

Bruce has entrusted his lifelong friend, Ryan Faletovich, with $28 ,000.

And that's enough incentive to convince at least two others to jump in as well.

There was no paperwork.

I mean, nothing.

We just trusted him, and that was, you know, it was that simple. I trusted him.

In just a few weeks, Faletovich will collect nearly $1 .2 million from 18

friends and family members.

The investors were investing $25 ,000 at a time, $50 ,000.

We had one investor that invested almost a quarter of a million dollars.

Al Bruce's younger brother, Brad, hears about the deal.

I didn't want to miss out on it. He told me I could triple my money within a

month's time or less than a month's time.

Brad Bruce is looking to grow his plumbing business, and he's hoping a

return here will help pave the way.

He gives Palatovich $100 ,000.

It was a crazy amount of money for me to invest.

It was more than half of what my house was worth.

Bruce thinks the investment is safe.

His friend Palatovich has promised everyone their money will sit untouched

his bank account for a couple of weeks until the big payout.

And that was the one thing he promised me. Money will never leave the account.

But on June 15th, Falatovich changes his story and withdraws $442 ,000

that he promptly delivers to Eric Chicago Blaxican Jaglisik.

That's when the thing all fell apart.

Jaglisik says the money was a gift and that he used it to buy this house in

suburban Orland Park.

What got me in trouble was that house right there.

It wasn't about no movie.

It was about no evidence.

It was about me not living in that house.

It's not a mansion, but for a rapper without a record deal or a day job, it's

pretty nice pad.

And Jaglisik quickly sets to filling it, thanks to Brian Palatowicz.

He would literally hand him bags of cash, and Jaglisik would turn right

and spend the money.

Like right when you walk in, you see two big posters.

Of me.

Of my face.

And it was on my album.

It's cool.

It's like this is my house. This is where I live.

Come on in.

This is Blaxican time.

The $1 .2 million Palachowicz has collected will quickly disappear.

His attorney says Chicago Blacksigan played gangster and threatened the deal

would collapse if he didn't hand over the cash.

Basically, whatever Blacksigan had to say to get Brian to part with money, he

would say.

Including, if you don't give it to me, then everybody loses everything,

including all the money that you had put in before.

Bill Harmoning says Chicago Blaxigan took that money and literally made

at home with it.

He spent approximately $14 ,000 to do the build -out in the basement for the

recording studio, and then he actually equipped it with a 48 -channel mixer

board.

Thousands of dollars worth of speakers. It was a very nice studio that he

installed.

Chickalistic sharks take the plunge.

into a new 650 -gallon tank that costs $5 ,000.

And the sharks aren't the only exotic pets he keeps.

Meet Danger and Dangerous.

Two alligators.

They were about six inches long, but they were American alligators that would

have been eight feet at some point.

He indicated that he was going to raise them in his crawl space.

When you see Happy Gilmore, the movie with Adam Sadler, he had alligators in

movie. So I said, well, I could do this too.

In his small backyard, Jaglisik puts in a hot tub, a basketball court, and even

commissions the installation of a swimming pool.

They said that he had walked in with a bag of cash and asked how much to

an in -ground pool.

They asked him how much he had, and he said $24 ,000, and they said that's how

much it's going to cost.

Can't have an empty yard. A rapper needs a basketball court.

I need a pool.

Girls like pool.

But his most ambitious plans run afoul of city ordinances.

He tried to get a zoning variance to build a sniper tower up on top of his

house and a high security fence around the front yard with his name on it, with

Blaxican on it. And, of course, the zoning board turned him down on both.

Jaglisik says his biggest triumph as a film producer occurs on July 30th when

hires musician Ice -T to fly into town to rap with him at a local strip club.

I gave Ice -T six grand through a Western union.

I paid for his first class plane tickets, which was $2 ,700

I paid for his limo, food, things like that.

Special agent Harmoning will later testify.

Jiglicic actually spends $80 ,000 for a party that only amounts to a few minutes

of grainy footage.

The money was all investor money.

Eric opened up, sang a few songs, and then Ice -T came up, sang a few songs,

that was the end of it.

Jiglicic claims it is a key scene for the movie, but Ice -T is only visible

during a few flashes of light, and there is no footage of him performing.

What the f***? Man, what do you want it to be of?

It's iced tea. That's us walking in. That's part of the movie. Now you want

judge my movie.

I don't give a crap.

It's my movie.

While Chicago Blaxigan is filming in strip clubs, investors have no idea how

their money is being spent.

And they anxiously press Brian Falatovich for when their big payday is

Under growing pressure, Falatovich finally admits who his partner is.

A 26 -year -old aspiring rapper.

The news catches investors like Brad Bruce by surprise.

Take a good look at me.

Do I look like the type of guy to invest in somebody like that, a rapper?

No. That was the most comical thing I've ever heard.

In August, several investors track Chicago Blacksican down.

They don't like what they hear.

Eric provided a lot of information about the movie.

He tried to explain to them how Hollywood worked, how these deals

think they knew that they'd been defrauded, that he was making this stuff

When they call Adam Sandler's production company, their fears are confirmed.

Sandler has never heard of the movie.

Next. I'm sorry they lost their money.

Sorry. But it ain't got nothing to do with me.

Chicago Blaxigan's not about to give up the money without a fight.

I got this check, I got this house, and that's that.

October 2006.

Concerned investors tell Illinois securities agent Bill Harmoning about a

million movie -making scam in the Chicago suburbs.

Harmoning turns to Eric Jaglisik and Brian Falotovich for answers.

Most of the cases we work, people will take steps to hide what they're doing.

These guys took no steps whatsoever.

Everything in this house is pretty much stolen.

Thanks to videos Eric, Chicago Blacksic, and Jaglisik has created, Harmoning has

no trouble tracking him down.

Over the phone, Deglesig denies he's producing a movie with actor Adam

He told me he had never told anyone about a movie deal, didn't know what I

talking about, denied any knowledge of it.

But Harmoning's seen and heard enough to believe otherwise.

He prepares to execute a seizure warrant at Deglesig's house.

To motivate his officers, Harmoning plays tracks from Chicago Blaxican's

album, Suburban Police Are Nerds Who Became Cops.

Is it just me, or is it a big coincidence that every suburban cop is

short, fat, ugly, or got a $10 haircut?

I made sure that about 15 suburban cops went with me, and I let them listen to

that CD before we went. So they had a good time.

Helping out that day.

Once inside, they seized almost everything Jeklisik owns.

We seized a number of televisions. We seized some very high -end recording

equipment and stereo equipment.

We seized in the garage a number of arcade games, pool table.

The house, hot tub, sauna, Hummer, even the pet sharks are all taken to pay back

investors.

And at the end of that day, he ended where he began. He had his clothes and

dog, and that was about it.

And Blacksican's two baby alligators that he once dreamed of displaying in

crawl space?

Alligators are contraband, so you can't legally have them in Illinois.

They were eventually released in Florida.

Right now, every time I see someone dies in Florida from alligators, that could

be that.

Confronted by Harmoning, the rapper and his partner, Brian Falatovich, turn on

each other.

Falatovich, through his lawyer, says he's only guilty of trusting the wrong

person. Eric misled Brian Falatovich, and Brian Falatovich so believed

everything that he heard that he sold this bill of goods to

his friends, family, everybody he knew.

Teglesek says he never promised investors any returns from the movie,

200 to 400 percent.

That was all Falatovich.

Who deposited the money?

Not me.

Who withdrew the money?

Not me. Who promised all these people that this money is not going to go

anywhere?

Not me.

There are no contracts or paperwork to support either's claims.

But Jaglisik does offer one document he says definitively clears him of blame. A

four -sentence paper he says Faletovich signed the day after Jaglisik's house

was seized in November 2006.

Eric Jaglisik has nothing.

Big, black, bold letters and brackets.

Nothing to do with any securities fraud whatsoever.

I gave him this check out of my own money.

Signed.

Notarized.

Signature. This is my proof.

Brian Falatovich's name is misspelled. And when the letter is found, they're

charged with perjury.

Eric Chicago Blaxican -Diglesik and Brian Palatovich are indicted in June

on 27 counts of theft and securities fraud.

In March 2008, Chicago Blaxican pleads guilty and serves two and a half years

state prison for a short time getting what he wanted all along, a house with a

sniper tower.

When he was going to prison, I said the good news is you're going to have some

street cred now because you're going to have prison time. I said the bad news is

it's for security's fraud.

In November 2008, Brian Palatovich also pleads guilty and serves 19 months in

prison.

Today, friends like Al and Brad Bruce say they've forgiven him for his role in

stealing their money.

At the end of the day, I don't think he set out to steal from me.

I think it's just he got carried away with some bad decisions.

The only thing he was guilty of was being naive.

He just, he got caught up in it, and he didn't investigate it more himself.

But Harmoning is less forgiving.

He says Faletovich played the key role of luring investors in. I think without

him, this never could have happened, because I don't think anyone would have

believed Eric Jiglicic for a minute.

Do you believe incarceration really leads to rehabilitation?

And Eric Chicago Blaxican Jaglicic? Now out of prison, he hopes to file a

clemency petition and clear his name.

He's still chasing his rap dreams, but for now, his options are limited.

I tried to get a job at Menards, Home Depot,

Party City, McDonald's, just for kicks.

They all said, no, you have a felon.

So what do you want me to do now? Make another movie?

I might as well.

I'm stressed the fuck out.

Vegas sports betting expert Steve Stevens has a whale on the line. I will

him Mr. B for billion.

And VIP's best agent gets reeled into the worst of Vegas.

Are you kidding me?

Money Talks, all new right now.