1 00:00:01,000 --> 00:00:05,040 In this episode of American Greed, game on. 2 00:00:05,280 --> 00:00:10,320 Investment managers Joel David Salinas and Brian Bjork make millions selling 3 00:00:10,320 --> 00:00:11,560 bonds in Houston. 4 00:00:11,940 --> 00:00:15,860 In this business, trust me, the smoother talkers, they raise a lot of money. 5 00:00:16,120 --> 00:00:21,480 They net an all -star roster of clients, including basketball coaches from major 6 00:00:21,480 --> 00:00:23,180 universities across the country. 7 00:00:23,600 --> 00:00:27,180 You saw these prominent figures, and if they're happy, then why aren't you 8 00:00:27,180 --> 00:00:28,840 happy? Jump in and join the fun. 9 00:00:29,680 --> 00:00:36,040 But now the feds are crying foul because this $39 million bond game is 10 00:00:36,040 --> 00:00:42,680 rigged. And later, fact and fiction blur when 26 -year -old rapper Eric 11 00:00:42,680 --> 00:00:47,320 Chicago Blaxigan Jaglisik says he's producing a Hollywood movie. 12 00:00:47,580 --> 00:00:52,920 I mean, $100 bills ain't, to me, I mean, it grows on trees. Now Jaglisik tells 13 00:00:52,920 --> 00:00:54,940 his story to American Greed. 14 00:00:55,620 --> 00:00:59,780 I got a half a million dollar house. I'm making a movie at a young age and I 15 00:00:59,780 --> 00:01:01,600 don't work a day in my life. 16 00:01:01,980 --> 00:01:03,460 And I have the American dream. 17 00:01:03,860 --> 00:01:08,400 But when the deal falls apart, investors lose a fortune. 18 00:01:09,300 --> 00:01:12,600 The guy was just a pathological liar. He just lied about everything. 19 00:01:28,220 --> 00:01:30,060 July 15th, 2011. 20 00:01:31,780 --> 00:01:37,240 Joel David Salinas, a 60 -year -old investment manager from Houston, Texas, 21 00:01:37,240 --> 00:01:38,520 been missing for days. 22 00:01:39,600 --> 00:01:45,040 He's finally located on a jet ski 30 miles away in Galveston Bay. 23 00:01:47,480 --> 00:01:54,320 Mr. Salinas actually takes his jet ski out into Galveston Bay and rams it into 24 00:01:54,320 --> 00:01:55,560 pylon in the middle of the bay. 25 00:01:55,950 --> 00:01:59,410 seemingly attempting to do harm to himself in some capacity. 26 00:02:01,210 --> 00:02:06,630 Ultimately, the Coast Guard rescues him and brings him back to shore, and he's 27 00:02:06,630 --> 00:02:09,729 voluntarily admitted into a hospital for examination on that Friday. 28 00:02:11,570 --> 00:02:12,930 Salinas is desperate. 29 00:02:13,230 --> 00:02:18,470 He's darting a federal investigation into a $39 million scam he's accused of 30 00:02:18,470 --> 00:02:21,850 running for more than 20 years, and the feds are closing in. 31 00:02:23,060 --> 00:02:26,760 Scott Eden writes about Salinas for ESPN the magazine. 32 00:02:27,360 --> 00:02:31,880 You can see him doing good, and you can see him doing very bad, and obviously 33 00:02:31,880 --> 00:02:33,100 the one side won out. 34 00:02:34,620 --> 00:02:36,580 Salinas grows up in Houston. 35 00:02:36,980 --> 00:02:39,860 In his 20s, he turns to the greed side. 36 00:02:40,500 --> 00:02:44,620 He's arrested for credit card fraud and served six months for forging his 37 00:02:44,620 --> 00:02:46,120 mother's name on checks. 38 00:02:47,290 --> 00:02:51,610 Hoping for a fresh start, he moves to Corpus Christi and opens an insurance 39 00:02:51,610 --> 00:02:57,270 company. He finds success there. He works with local advocacy groups and 40 00:02:57,270 --> 00:02:59,030 considers a run at politics. 41 00:02:59,790 --> 00:03:01,270 He was a rising star. 42 00:03:01,490 --> 00:03:06,030 People thought he might be a mayoral candidate, eventually a congressman. 43 00:03:06,250 --> 00:03:12,250 But plans to run for city council in 1983 crumble as his past comes to light. 44 00:03:12,570 --> 00:03:18,050 He's also accused of misappropriating $92 ,000 from the local Big Brothers Big 45 00:03:18,050 --> 00:03:19,050 Sisters program. 46 00:03:19,550 --> 00:03:24,450 And his public career was ruined, but he somehow struck a deal with the local 47 00:03:24,450 --> 00:03:27,950 authorities, and the charges were dropped, and he just agreed to pay back 48 00:03:27,950 --> 00:03:30,210 portion of what he had allegedly misappropriated. 49 00:03:31,570 --> 00:03:36,470 Disgraced again, Salinas packs up and moves 200 miles northeast to the Houston 50 00:03:36,470 --> 00:03:38,090 suburb of Friendswood. 51 00:03:38,520 --> 00:03:41,920 hoping for yet another chance to wipe his slate clean. 52 00:03:42,380 --> 00:03:48,540 In 1987, Salinas creates a series of businesses he ambitiously names the J. 53 00:03:48,800 --> 00:03:50,360 David Group of Companies. 54 00:03:50,860 --> 00:03:55,340 It sounds like it's, you know, this white shoe, old money, you know, firm. 55 00:03:55,640 --> 00:04:01,180 In reality, it's a storefront in Friendswood, tiny staff, basically a 56 00:04:01,180 --> 00:04:05,280 neighborhood kid that he hired to staff it with him, relatives. 57 00:04:06,830 --> 00:04:12,210 Salinas is an avid college sports fan, and with the J. David Group, he can 58 00:04:12,210 --> 00:04:13,470 indulge that passion. 59 00:04:14,370 --> 00:04:18,670 He begins selling insurance policies to the athletic departments of local 60 00:04:18,670 --> 00:04:24,010 universities. He winds up creating a business that sells type of liability 61 00:04:24,010 --> 00:04:28,530 insurance to universities that protect them from those liabilities that might 62 00:04:28,530 --> 00:04:30,230 occur when kids maybe get hurt. 63 00:04:31,920 --> 00:04:37,400 But Salinas has bigger plans than selling insurance, says Assistant U .S. 64 00:04:37,400 --> 00:04:38,960 Attorney Jason Varnado. 65 00:04:39,780 --> 00:04:45,180 Despite having no credentials to do so, he simply marketed himself as a 66 00:04:45,180 --> 00:04:46,180 financial advisor. 67 00:04:46,420 --> 00:04:51,600 Salinas targets his existing roster of contacts, offering stocks and other 68 00:04:51,600 --> 00:04:55,800 investments. But his calling card is long -term corporate bonds. 69 00:04:56,320 --> 00:04:57,400 He would say... 70 00:04:57,660 --> 00:05:01,800 I am able to procure corporate bonds at discounted rates because I buy so many 71 00:05:01,800 --> 00:05:02,800 in bulk. 72 00:05:02,840 --> 00:05:06,960 Because of that discount rate, you're going to get an even better rate of 73 00:05:06,960 --> 00:05:08,080 than you might otherwise get. 74 00:05:08,580 --> 00:05:14,300 Salinas slowly builds a loyal base of investors with steady 6 % to 8 % 75 00:05:14,580 --> 00:05:18,340 says Securities and Exchange Commission attorney Timothy McColl. 76 00:05:18,800 --> 00:05:20,560 Nice, safe, conservative. 77 00:05:21,280 --> 00:05:23,360 He didn't promise above market rate. 78 00:05:23,920 --> 00:05:27,520 But what he did promise was consistency. In other words, when the market goes 79 00:05:27,520 --> 00:05:30,160 down, you're going to be fine. When the market goes up, you're going to be fine. 80 00:05:31,700 --> 00:05:36,000 Salinas has a strong personality and a passion for college sports. 81 00:05:36,520 --> 00:05:41,280 That and his athletic insurance connections will propel him to new 82 00:05:41,280 --> 00:05:46,020 he meets men's basketball coaches Scott Thompson and Gray Giovanni at nearby 83 00:05:46,020 --> 00:05:47,020 Rice University. 84 00:05:47,580 --> 00:05:49,380 He was their friend first, they thought. 85 00:05:50,090 --> 00:05:53,670 And then second, they said, oh, he's a money manager, so why don't I go, why 86 00:05:53,670 --> 00:05:57,050 don't I put my money with this person that I can, he's already my friend, so I 87 00:05:57,050 --> 00:05:58,050 can trust him. 88 00:05:58,470 --> 00:06:03,790 When they become clients, it opens a door for Salinas into a very private 89 00:06:05,050 --> 00:06:09,790 Coaches are moving from school to school, and as each guy would move from 90 00:06:09,790 --> 00:06:15,210 to a different school, they would introduce Salinas to these new coaches 91 00:06:15,210 --> 00:06:17,590 new staff, and his circle just widened over the years. 92 00:06:18,570 --> 00:06:23,450 None of the coaches American Greed contacted who knew Salinas would speak 93 00:06:23,450 --> 00:06:28,750 record. But Scott Eden discovers that Salinas used their trust and friendship 94 00:06:28,750 --> 00:06:29,850 line his pockets. 95 00:06:30,630 --> 00:06:35,030 Over the next two decades, more than a dozen of the biggest names in college 96 00:06:35,030 --> 00:06:38,170 coaching will invest millions with the J. David Group. 97 00:06:39,570 --> 00:06:46,570 Billy Gillespie, Mark Few, Scott Drew, Doc Sadler, Lou Dolson, of course. 98 00:06:47,370 --> 00:06:51,410 Those are just some of the guys that became clients of Salinas. 99 00:06:53,190 --> 00:06:57,830 Flush with success, Salinas becomes heavily active in the Houston community. 100 00:06:58,450 --> 00:07:01,530 He forms a youth basketball league in 1992. 101 00:07:02,290 --> 00:07:07,110 And five years later, he helps create the not -for -profit Houston Athletics 102 00:07:07,110 --> 00:07:11,130 Foundation. Houston Athletics Foundation played a fairly large role in 103 00:07:11,130 --> 00:07:14,170 supplementing the athletic budget at the University of Houston. 104 00:07:14,800 --> 00:07:19,420 And keep in mind, as he did that and as that was set up, he gained access to a 105 00:07:19,420 --> 00:07:23,200 growing number of, again, prominent Houston businesspersons and people in 106 00:07:23,200 --> 00:07:24,400 athletic community here locally. 107 00:07:25,940 --> 00:07:30,880 Salinas' business is booming, mostly because of the steady returns from the 108 00:07:30,880 --> 00:07:34,700 corporate bonds he's offering and the famous coaches he's rubbing shoulders 109 00:07:34,700 --> 00:07:37,720 with. He had nice homes. He drove a Bentley. 110 00:07:38,020 --> 00:07:39,500 He owned a Porsche. 111 00:07:39,740 --> 00:07:42,640 And he was living well off of other people's hard -earned money. 112 00:07:44,650 --> 00:07:50,850 Next on American Greed, investors have a confrontation and learn there's a dark 113 00:07:50,850 --> 00:07:53,170 secret behind the Midas touch. 114 00:07:53,630 --> 00:07:55,430 I was getting pretty livid with him. 115 00:07:55,890 --> 00:07:58,950 I just knew for a fact that he was lying to my face. 116 00:08:10,280 --> 00:08:15,720 J. David Salinas has spent almost 10 years selling corporate bonds to a 117 00:08:15,720 --> 00:08:19,200 roster of college coaches and clients with deep pockets. 118 00:08:19,800 --> 00:08:24,340 Each year, he throws lavish final four parties that further cement his 119 00:08:24,340 --> 00:08:28,300 relationships and reputation with coaches across the country. 120 00:08:28,600 --> 00:08:32,260 He wanted to be a mover and a shaker in the college athletic community, and he 121 00:08:32,260 --> 00:08:35,100 liked to be seen as the big man on campus. 122 00:08:35,820 --> 00:08:39,960 But Salinas has been hiding a problem he can't ignore forever. 123 00:08:40,460 --> 00:08:42,520 Mr. Salinas was not registered with the commission. 124 00:08:42,780 --> 00:08:46,500 He was not registered. He was not a registered representative of a 125 00:08:46,500 --> 00:08:47,500 broker dealer. 126 00:08:48,200 --> 00:08:52,900 To stay out of trouble, Salinas needs someone with the right qualifications. 127 00:08:53,180 --> 00:08:56,720 And in 1995, he finds Brian Bjork. 128 00:08:56,940 --> 00:09:01,260 He hires Mr. Bjork, who actually does become a registered investment advisor. 129 00:09:01,840 --> 00:09:05,740 Unlike Mr. Salinas, who never was a registered investment advisor, never had 130 00:09:05,740 --> 00:09:06,800 credentials to do so. 131 00:09:07,300 --> 00:09:13,820 Bjork also shares his boss's love of college basketball, and soon he's become 132 00:09:13,820 --> 00:09:16,040 integral part of the J. David Group. 133 00:09:16,460 --> 00:09:20,800 He started at the bottom, and fairly soon thereafter, he continued to rise to 134 00:09:20,800 --> 00:09:24,580 become vice president and really Mr. Salinas' right -hand man. 135 00:09:25,420 --> 00:09:27,860 Eleven years later, in 2006, 136 00:09:28,600 --> 00:09:33,280 Salinas consolidates much of the J. David Group into a new company he calls 137 00:09:33,280 --> 00:09:35,060 Select Asset Management. 138 00:09:35,360 --> 00:09:38,600 He promotes Brian Bjork to chief executive officer. 139 00:09:39,420 --> 00:09:44,680 The company moves into a Houston office complex, promising clients they'll have 140 00:09:44,680 --> 00:09:47,000 a better variety of investment opportunities. 141 00:09:47,720 --> 00:09:50,420 They offered the bonds. They offered stocks. 142 00:09:51,210 --> 00:09:57,070 And they also offered securities or investments in these two private funds 143 00:09:57,070 --> 00:09:59,310 they held within select asset management. 144 00:10:00,270 --> 00:10:05,110 Salinas uses his starting lineup of coaches to aggressively sell the new 145 00:10:05,110 --> 00:10:07,350 venture. It's potent advertising. 146 00:10:07,970 --> 00:10:12,950 He unequivocally utilized and used to his advantage his relationships with the 147 00:10:12,950 --> 00:10:14,950 basketball coaches to secure other investors. 148 00:10:16,510 --> 00:10:20,150 Scott Jackson is a Houston -based portfolio manager. 149 00:10:20,890 --> 00:10:25,250 He's never worked with Salinas or Bjork, but his 89 -year -old grandmother has 150 00:10:25,250 --> 00:10:26,250 known them for years. 151 00:10:26,470 --> 00:10:30,450 She's invested nearly a million dollars with J. David Group and Select Asset 152 00:10:30,450 --> 00:10:34,670 Management, most of it in their conservative corporate bond program. 153 00:10:35,210 --> 00:10:40,430 They were doing fixed income investing and, you know, trying to generate that 6 154 00:10:40,430 --> 00:10:43,690 % to 7 % return was what they were telling her. 155 00:10:44,170 --> 00:10:49,670 She trusts Salinas and Bjork completely and has never had a reason to doubt 156 00:10:49,670 --> 00:10:53,610 them. If she needed $50 ,000, they'd send her $50 ,000. 157 00:10:53,930 --> 00:11:00,030 I mean, they were extremely nice to her, and she loved calling them. 158 00:11:00,590 --> 00:11:05,750 And when the economy collapses in 2007, her family is happy to see those 159 00:11:05,750 --> 00:11:07,150 accounts continue to grow. 160 00:11:07,670 --> 00:11:13,350 But after three years of steady gains, despite the economic downturns, Scott 161 00:11:13,350 --> 00:11:15,310 Jackson begins to have doubts. 162 00:11:15,690 --> 00:11:17,510 I was skeptical on that whole. 163 00:11:18,350 --> 00:11:21,890 how he bought that, how he was getting those nice returns. 164 00:11:22,770 --> 00:11:27,930 Jackson doesn't manage his grandmother's finances, but he is curious what Brian 165 00:11:27,930 --> 00:11:29,270 Bjork's secret is. 166 00:11:30,210 --> 00:11:35,930 In November 2010, he calls a meeting with Bjork. The money manager explains 167 00:11:35,930 --> 00:11:40,730 they are acquiring the corporate bonds at substantial discounts of as much as 168 00:11:40,730 --> 00:11:44,310 40%. You know, I was like, okay, but no one will ever... 169 00:11:44,780 --> 00:11:49,660 Be selling a bond that's currently trading, you know, say 140 and sell it 170 00:11:49,660 --> 00:11:50,399 at 100. 171 00:11:50,400 --> 00:11:55,960 No bank institution would be that dumb to make that type of transaction. 172 00:11:57,100 --> 00:12:02,080 Tempered flair as Jackson realizes that Bjork is evading his questions. 173 00:12:02,640 --> 00:12:07,900 I was telling him, Brian, I don't believe you. I just don't see how this 174 00:12:08,120 --> 00:12:11,040 And I believe you're a liar. You are lying to my face right now. 175 00:12:11,870 --> 00:12:16,450 After the meeting, Jackson begs his family to get his grandmother's money 176 00:12:16,450 --> 00:12:18,130 from Select Asset Management. 177 00:12:19,410 --> 00:12:23,310 But his family trusts their old friends, Salinas and Bjork. 178 00:12:23,970 --> 00:12:25,570 They decide to stay put. 179 00:12:26,190 --> 00:12:31,170 I wish I was a little more forceful on getting their money out, but hindsight's 180 00:12:31,170 --> 00:12:34,870 20 -20, and it's a lot easier said than done. 181 00:12:36,360 --> 00:12:41,120 Scott Jackson isn't the only one asking questions about these too -good -to -be 182 00:12:41,120 --> 00:12:42,120 -true bonds. 183 00:12:42,400 --> 00:12:49,060 In June 2010, a routine Securities and Exchange Commission exam reveals some 184 00:12:49,060 --> 00:12:52,360 troubling inconsistencies at select asset management. 185 00:12:52,920 --> 00:12:58,120 Our examiners uncovered some red flags, commingling of investor money into a 186 00:12:58,120 --> 00:13:03,180 common bank account, using investor money to make loans to close associates. 187 00:13:04,680 --> 00:13:09,560 Investigators will discover that nearly $2 million are being moved around the J. 188 00:13:09,600 --> 00:13:12,140 David companies disguised as loans. 189 00:13:12,840 --> 00:13:18,640 Mr. Bjork was loaning that money to companies that were controlled by Mr. 190 00:13:18,840 --> 00:13:23,700 Salinas, a very close associate of his and someone who you would expect would 191 00:13:23,700 --> 00:13:24,700 get a sweetheart deal. 192 00:13:25,100 --> 00:13:28,360 Bjork tries to hold off the SEC for a year. 193 00:13:28,780 --> 00:13:33,640 But in July 2011, he turns on his boss to save his own skin. 194 00:13:34,820 --> 00:13:40,240 His lawyer calls the SEC to say Bjork's had a change of heart and is willing to 195 00:13:40,240 --> 00:13:43,960 play ball and give up explosive information about J. 196 00:13:44,180 --> 00:13:45,180 David Salinas. 197 00:13:45,440 --> 00:13:46,440 Well, guess what? 198 00:13:46,940 --> 00:13:51,520 There's been this bond program started by Mr. Salinas. 199 00:13:51,900 --> 00:13:56,380 And Mr. Bjork has some suspicions that these bonds don't even exist. 200 00:13:57,130 --> 00:14:01,890 Those corporate bonds Salinas has been selling, the backbone of his 20 -year 201 00:14:01,890 --> 00:14:04,430 -old investment companies, aren't real. 202 00:14:05,370 --> 00:14:09,990 The bonds he was supposedly buying were fake. He wasn't buying any bonds. He was 203 00:14:09,990 --> 00:14:14,150 just telling people that. And when people expected a return on that 204 00:14:14,390 --> 00:14:16,530 he would use somebody else's money to pay them. 205 00:14:17,810 --> 00:14:21,590 Despite what he's been offering for years to coaches and other investors, 206 00:14:22,050 --> 00:14:25,470 Salinas has never bought a single corporate bond. 207 00:14:26,110 --> 00:14:32,190 It was at that point that events began to move very, very quickly. 208 00:14:32,810 --> 00:14:34,810 In a flash, it's all gone. 209 00:14:35,190 --> 00:14:39,970 Friends, money, his reputation, and the college coaches who meant so much. 210 00:14:41,410 --> 00:14:46,510 Devastated, Salinas disappears to his Galveston beach house just steps ahead 211 00:14:46,510 --> 00:14:47,510 a federal investigation. 212 00:14:49,550 --> 00:14:55,010 Next on American Greed, Salinas finds himself on a jet ski in Galveston Bay. 213 00:14:56,020 --> 00:14:57,860 contemplating the unthinkable. 214 00:15:10,260 --> 00:15:12,440 July 15, 2011. 215 00:15:13,220 --> 00:15:16,280 Joel David Salinas is ducking federal investigators. 216 00:15:16,860 --> 00:15:22,220 But when he's found on his jet ski, he's run out of options, says Secret Service 217 00:15:22,220 --> 00:15:24,140 Undercover Special Agent Michael. 218 00:15:24,830 --> 00:15:29,270 We figured he was desperate, he needed somebody to talk to, and who better to 219 00:15:29,270 --> 00:15:30,830 talk to than law enforcement officers? 220 00:15:31,770 --> 00:15:36,870 Investigators are eager to confirm suspicions that Salinas has created a 221 00:15:36,870 --> 00:15:41,470 million investment fraud centered around the sale of non -existent corporate 222 00:15:41,470 --> 00:15:48,050 bonds. Salinas essentially was guilty of running a massive corporate bond Ponzi 223 00:15:48,050 --> 00:15:52,550 scheme that victimized a lot of people and ultimately lost a lot of people 224 00:15:52,550 --> 00:15:53,550 life savings. 225 00:15:54,689 --> 00:15:59,650 Salinas has taken his jet ski out to end his problems once and for all. 226 00:15:59,910 --> 00:16:02,690 But at the last moment, he gets cold feet. 227 00:16:03,350 --> 00:16:07,550 He admits that he tried to commit suicide the night before by trying to 228 00:16:07,550 --> 00:16:11,190 the sea dew into a pylon or a portion of the ridge. 229 00:16:15,250 --> 00:16:17,990 Uninjured, he's taken to a hospital for evaluation. 230 00:16:18,850 --> 00:16:23,310 But hours later, he checks out and rushes back to his friend's woodhouse. 231 00:16:23,840 --> 00:16:26,400 where investors are already waiting for him. 232 00:16:26,960 --> 00:16:32,820 So there's like this posse of angry clients waiting to confront the guy and 233 00:16:32,820 --> 00:16:33,820 out what's going on. 234 00:16:34,780 --> 00:16:38,960 Salinas dodges them and hides in his house until Sunday morning. 235 00:16:39,280 --> 00:16:42,960 So he's alone in the house, and that's when it happens. 236 00:16:44,560 --> 00:16:48,300 This time, Salinas is resigned to his fate. 237 00:16:50,700 --> 00:16:52,840 He goes to his backyard pool. 238 00:16:56,040 --> 00:17:01,920 slips into the deep end and fatally shoots himself underwater. 239 00:17:04,819 --> 00:17:09,140 The only reason you would do that would be to muffle the sounds and no one would 240 00:17:09,140 --> 00:17:10,700 hear it. And no one did. 241 00:17:12,160 --> 00:17:15,060 Salinas' body is discovered within hours. 242 00:17:15,460 --> 00:17:20,960 His abrupt death changes the focus of the investigation immediately, says FBI 243 00:17:20,960 --> 00:17:22,960 Special Agent Kendall Hopper. 244 00:17:23,420 --> 00:17:27,380 It appeared from all the evidence we had at that time that Mr. Salinas was the 245 00:17:27,380 --> 00:17:29,920 main person behind the corporate bond. 246 00:17:30,380 --> 00:17:34,680 But we wanted to see if anyone else was also involved in his fraud. 247 00:17:36,440 --> 00:17:41,700 They turned their attention to right -hand man Ryan Bjork, the person who had 248 00:17:41,700 --> 00:17:44,040 originally clued them in to the fake bonds. 249 00:17:44,760 --> 00:17:47,460 But Bjork has shared another surprise. 250 00:17:48,170 --> 00:17:52,930 a note he claims he found before the suicide that was written by Salinas. 251 00:17:53,170 --> 00:17:58,730 In the note, Mr. Salinas accepted responsibility for everything to do with 252 00:17:58,730 --> 00:18:02,010 corporate bonds and exonerated Mr. Bjork and others. 253 00:18:03,330 --> 00:18:06,610 The note is authentic, but is it true? 254 00:18:07,370 --> 00:18:12,070 Agents Hopper and Michael will spend a year pouring through records seized from 255 00:18:12,070 --> 00:18:15,550 Salinas' companies and home to find that answer. 256 00:18:16,090 --> 00:18:18,990 It took a lot of time to go through everything and put together the pieces. 257 00:18:19,230 --> 00:18:23,710 At no point in time was Mr. Bjork forthcoming in our investigation. 258 00:18:24,610 --> 00:18:29,130 Of particular interest are records from the University of Houston booster 259 00:18:29,130 --> 00:18:33,850 organization Salinas helped create called the Houston Athletic Foundation. 260 00:18:34,430 --> 00:18:40,470 They discover Brian Bjork has been treasurer since 2004 and has enjoyed 261 00:18:40,470 --> 00:18:42,410 limitless access to its accounts. 262 00:18:43,530 --> 00:18:47,750 H .A .F. has more than $2 million invested in Salinas' companies. 263 00:18:48,350 --> 00:18:50,810 But their accounting records don't make sense. 264 00:18:51,770 --> 00:18:54,370 The files were not kept in a logical manner. 265 00:18:54,610 --> 00:18:57,550 Their bookkeeping was poor at best. 266 00:18:58,490 --> 00:19:02,930 One day, Agent Michael is in his office and Agent Hopper is in hers. 267 00:19:03,610 --> 00:19:07,850 Over the phone, they try once more to reconcile the Houston Athletic 268 00:19:07,850 --> 00:19:11,270 books. We were both on the same date. 269 00:19:11,760 --> 00:19:14,880 for the consolidated statement, and our numbers weren't jiving. 270 00:19:15,440 --> 00:19:18,800 We noticed that the total dollar amounts were different. 271 00:19:19,260 --> 00:19:22,640 And then it dawned on us that there was actually two sets of books. 272 00:19:23,060 --> 00:19:28,200 While Joel David Salinas has been selling fake bonds, his trusted 273 00:19:28,460 --> 00:19:32,440 Brian Bjork, has been running his own scam within a scam. 274 00:19:32,900 --> 00:19:37,220 We discovered that Mr. Bjork had been taking checks that investors had made 275 00:19:37,220 --> 00:19:40,620 to J. David Financial Group and then using those bonds for his own. 276 00:19:41,020 --> 00:19:42,020 personal expenses. 277 00:19:43,480 --> 00:19:50,480 He's raided $550 ,000 from HAF's accounts and stolen nearly another 278 00:19:50,480 --> 00:19:53,760 dollars from a very personal list of clients. 279 00:19:54,180 --> 00:19:58,800 It's included his mother, his grandmother, other family members. 280 00:19:59,260 --> 00:20:04,160 You had David Salinas sitting in one office running a Ponzi scheme, and you 281 00:20:04,160 --> 00:20:07,560 Brian Bjork sitting right next door in his office running his own Ponzi scheme. 282 00:20:07,980 --> 00:20:11,100 neither of which individual knew what the other was up to. 283 00:20:12,440 --> 00:20:18,440 In 2013, faced with this evidence, Brian Bjork agrees to plead guilty to wire 284 00:20:18,440 --> 00:20:22,440 fraud and is sentenced to four years, four months in prison. 285 00:20:22,900 --> 00:20:24,440 We knew we had him dead to right. 286 00:20:24,900 --> 00:20:26,820 There was no weasel on his way out of it. 287 00:20:29,260 --> 00:20:34,660 Today, the Selena scandal is best known for rocking the NCAA and costing more 288 00:20:34,660 --> 00:20:37,060 than a dozen coaches millions of dollars. 289 00:20:38,640 --> 00:20:44,420 But at least 100 other investors saw more than $30 million of their life 290 00:20:44,420 --> 00:20:45,660 disappear as well. 291 00:20:46,120 --> 00:20:50,080 In addition to the prominent figures, you know, we had the everyday citizens 292 00:20:50,080 --> 00:20:53,840 that just invested their entire life savings and trusted Mr. Salinas and 293 00:20:53,840 --> 00:20:56,100 up being victimized and lost everything. 294 00:20:56,680 --> 00:21:02,200 Scott Jackson is still furious that Joel David Salinas and Brian Bjork stole 295 00:21:02,200 --> 00:21:04,600 nearly a million dollars from his grandmother. 296 00:21:05,150 --> 00:21:10,990 I look at Brian Bjork and David Salinas, and I find them to be scums of the 297 00:21:10,990 --> 00:21:14,770 earth. But Brian Bjork thinks about that every day he's in prison, and David 298 00:21:14,770 --> 00:21:16,010 Salinas took the easy way out. 299 00:21:17,770 --> 00:21:22,750 Weeks after Joel David Salinas' suicide, a court -appointed receiver is assigned 300 00:21:22,750 --> 00:21:25,630 to recover whatever assets remain for investors. 301 00:21:27,180 --> 00:21:32,420 The biggest surprise is that Salinas stockpiled $18 million worth of life 302 00:21:32,420 --> 00:21:34,800 insurance policies since at least 2010. 303 00:21:35,300 --> 00:21:40,380 The receiver is able to recover most of this money despite suicide exclusion 304 00:21:40,380 --> 00:21:41,380 provisions. 305 00:21:42,120 --> 00:21:48,840 And as a result, the receivership estate had a source of funds to pay back 306 00:21:48,840 --> 00:21:54,260 victims. It may be upwards of even 40 cents on the dollar, which in my 307 00:21:54,260 --> 00:21:56,120 experience is an extremely... 308 00:21:56,600 --> 00:21:58,620 Good recovery in these cases. 309 00:21:59,120 --> 00:22:04,040 Turns out, Joel David Salinas, the man who began his career as an insurance 310 00:22:04,040 --> 00:22:06,920 salesman, planned ahead for the end. 311 00:22:08,240 --> 00:22:09,680 Freedom of speech! 312 00:22:10,280 --> 00:22:15,820 Next on American Green, Eric Jaglisik is an aspiring suburban rap star. 313 00:22:16,320 --> 00:22:17,740 You better take me seriously. 314 00:22:18,080 --> 00:22:20,420 You better play my shit before my city comes out. 315 00:22:21,140 --> 00:22:22,640 With Hollywood Green. 316 00:22:23,520 --> 00:22:25,800 A rapper needs a basketball court. 317 00:22:26,460 --> 00:22:27,460 I need a pool. 318 00:22:27,520 --> 00:22:28,760 Girls like pool. 319 00:22:39,700 --> 00:22:44,840 Agent Bill Harmoning with the Illinois Securities Department has spent more 320 00:22:44,840 --> 00:22:46,980 20 years chasing financial predators. 321 00:22:48,330 --> 00:22:53,650 But in October 2006, he lands a case like no other when a frantic investor 322 00:22:53,650 --> 00:22:59,370 him about a $1 .5 million movie deal gone sour in Chicago's southwest 323 00:22:59,950 --> 00:23:05,370 I knew within 10 minutes of talking to him that he'd been defrauded, had all 324 00:23:05,370 --> 00:23:06,269 red flags. 325 00:23:06,270 --> 00:23:08,830 The story was just complete silliness. 326 00:23:09,850 --> 00:23:15,570 The alleged mastermind, Eric Jaglisik, has recently posted this video online. 327 00:23:16,270 --> 00:23:20,230 This is my recording studio. This is where I make all my beats on my track. 328 00:23:20,650 --> 00:23:25,890 Jaglisik's calling himself Chicago Blaxican, and he's been trying to 329 00:23:25,890 --> 00:23:26,890 rap career. 330 00:23:28,050 --> 00:23:31,970 Gangster? I'm the one doing things. I'm staying straight up. 331 00:23:32,530 --> 00:23:36,550 Jiglicic admits he's never worked a steady job, but he claims rapping and 332 00:23:36,550 --> 00:23:41,470 producing beats makes him enough money to fill this video with all the toys 333 00:23:41,470 --> 00:23:42,349 showing off. 334 00:23:42,350 --> 00:23:45,710 See, a lot of people don't realize this. I'm pretty good at music. 335 00:23:45,950 --> 00:23:47,190 I'm pretty good at producing. 336 00:23:47,430 --> 00:23:48,890 I'm pretty good at the engineering. 337 00:23:49,710 --> 00:23:54,570 But Harmony says the video is actually key evidence in the ambitious fraud 338 00:23:54,570 --> 00:23:59,350 Jaglisik executes. He ended up with over a million dollars in a very short 339 00:23:59,350 --> 00:24:03,170 amount of time, and he spent it in a very short amount of time, and he lived 340 00:24:03,170 --> 00:24:04,870 that lifestyle that he dreamed of living. 341 00:24:05,210 --> 00:24:09,370 I mean, $100 bills ain't, to me, I mean, it grows on trees. 342 00:24:09,990 --> 00:24:15,030 Months earlier, Jaglisik has made an unlikely new friend, 44 -year -old Brian 343 00:24:15,030 --> 00:24:16,030 Palatowicz. 344 00:24:16,780 --> 00:24:20,020 He owned an audiovisual equipment company. 345 00:24:21,060 --> 00:24:26,080 Jiglicic would come into his business to have copies of his CDs made, and that's 346 00:24:26,080 --> 00:24:27,420 where this plan was hatched. 347 00:24:28,160 --> 00:24:33,500 According to Faletovich's attorney, James McGurk, Jiglicic's not talking 348 00:24:33,740 --> 00:24:39,040 Instead, he says he's producing a movie called The Record Deal with the help of 349 00:24:39,040 --> 00:24:40,180 a major Hollywood star. 350 00:24:40,990 --> 00:24:47,410 The story that Eric presented to Brian was that Eric Jaglisik was purportedly 351 00:24:47,410 --> 00:24:52,030 involved in the movie deal with Adam Sandler. It's unclear whether Sandler is 352 00:24:52,030 --> 00:24:56,850 supposedly starring in or co -producing the film, but Jaglisik says the story is 353 00:24:56,850 --> 00:24:58,730 about Chicago Blaxican. 354 00:24:59,050 --> 00:25:04,470 The whole movie took place about me. It's about a rapper and a producer who 355 00:25:04,470 --> 00:25:07,690 great songs, but he doesn't want to sign to a record label. 356 00:25:08,520 --> 00:25:12,480 The problem is, Jaglisik needs money to keep the film in production. 357 00:25:13,700 --> 00:25:15,840 No special stuntmen. 358 00:25:16,200 --> 00:25:18,880 No great background. No cars crashing. 359 00:25:19,100 --> 00:25:20,640 No need to shut down a city. 360 00:25:21,080 --> 00:25:23,980 Just follow me around. Follow my life. 361 00:25:25,240 --> 00:25:30,280 Balotovich buys the story. He gives Jaglisik more than $150 ,000. 362 00:25:31,790 --> 00:25:35,370 and hands him keys to a new Cadillac Escalade as well. 363 00:25:36,010 --> 00:25:40,530 We're not quite sure why Palatovich agreed to do this. He seems to be a 364 00:25:40,530 --> 00:25:43,430 relatively intelligent man. He's a business owner. 365 00:25:43,770 --> 00:25:50,550 But for some reason, he fell into this, and Eric just had him on a hook like a 366 00:25:50,550 --> 00:25:51,550 fish. 367 00:25:52,150 --> 00:25:57,190 Jaglisik says the video he soon creates is a key scene from this film. 368 00:25:57,670 --> 00:26:01,070 People think I'm crazy for having sharks in my living room, but... 369 00:26:01,550 --> 00:26:05,730 Now that, again, people work 40 hours a week for a little measly paycheck, so 370 00:26:05,730 --> 00:26:06,970 what do they know? 371 00:26:07,230 --> 00:26:11,630 But a Cadillac, sharks, and a house full of electronics soon eat through the 372 00:26:11,630 --> 00:26:13,190 money Faletovich has provided. 373 00:26:14,050 --> 00:26:19,350 McGurk says within weeks, Chicago Blaxican begins pressuring his client 374 00:26:19,350 --> 00:26:20,930 money to complete the film. 375 00:26:21,190 --> 00:26:24,110 Eric. Got everything he could out of Brian. 376 00:26:24,310 --> 00:26:30,030 He had no more credit, he had no more cash, and so he had to get more, so he 377 00:26:30,030 --> 00:26:31,510 to get Brian to bring in other people. 378 00:26:32,670 --> 00:26:37,910 Balotovich turns to his family and friends, asking them to invest in this 379 00:26:37,910 --> 00:26:38,910 Sandler movie. 380 00:26:39,490 --> 00:26:44,830 He doesn't mention Eric Chicago Blacksican Jaglisik's name, but he does 381 00:26:44,830 --> 00:26:47,550 a short -term investment, the payout will be incredible. 382 00:26:48,250 --> 00:26:52,590 They would get their money back plus anywhere from 200 % to 400 % interest. 383 00:26:53,850 --> 00:26:58,690 One of the people Falotovich hits up in the summer of 2006 is his lifelong 384 00:26:58,690 --> 00:27:00,210 friend, Alan Bruce. 385 00:27:01,010 --> 00:27:05,510 Bruce soon pulls together $28 ,000 to invest in the deal. 386 00:27:05,990 --> 00:27:10,430 I've just seen the chance to double it. You know, that was what the theory was, 387 00:27:10,550 --> 00:27:11,970 is double it or maybe even more. 388 00:27:12,410 --> 00:27:14,950 I said, this can't get any better than this. 389 00:27:16,260 --> 00:27:19,140 Bruce has known Valatovic since they were kids. 390 00:27:19,720 --> 00:27:24,120 He says he had no reason to doubt him, even if the story sounded unlikely. 391 00:27:24,880 --> 00:27:26,360 He's an honest guy. I know that. 392 00:27:26,700 --> 00:27:28,240 I never had any problems with him. 393 00:27:29,200 --> 00:27:33,780 Soon, Bruce is delivering the money in cash to Valatovic. 394 00:27:34,240 --> 00:27:37,140 It was everything I had. I mean, I never had that much money ever. 395 00:27:37,580 --> 00:27:39,940 I pretty much lived check to check all the time. 396 00:27:40,340 --> 00:27:43,100 I'm not here for a long time. I'm here for a good time, is my theory. 397 00:27:45,450 --> 00:27:50,230 The deal is based completely on trust in Ryan Falatovich. 398 00:27:50,450 --> 00:27:55,310 This is a case where there were no contracts. There was no prospectus 399 00:27:55,310 --> 00:27:59,310 the investment. There was absolutely no paperwork that I know of. It was all 400 00:27:59,310 --> 00:28:01,730 done word of mouth on a handshake. 401 00:28:02,790 --> 00:28:08,310 But Eric Jiglicic is the only one who will benefit from this unshakable faith. 402 00:28:09,410 --> 00:28:10,950 Next on American Green. 403 00:28:11,760 --> 00:28:15,520 Chicago Blaxican dives into a million -dollar home makeover. 404 00:28:15,900 --> 00:28:19,540 I tricked that house. I pimped it out. I had to get it all ready for the movie. 405 00:28:20,620 --> 00:28:22,600 Want to live the life of a rapper? 406 00:28:23,100 --> 00:28:28,820 See more clips of Chicago Blaxican's video at americangreed .cnbc .com. 407 00:28:29,820 --> 00:28:31,120 Feeling greedy? 408 00:28:31,680 --> 00:28:34,700 Want more than your share of behind -the -scenes dirt? 409 00:28:35,380 --> 00:28:38,080 Follow us at American Greed TV on Twitter. 410 00:28:38,440 --> 00:28:40,120 We'll be right back. Thank you. 411 00:28:47,530 --> 00:28:53,030 A friendly game of cards in 2006 turns business when Al Bruce mentions another 412 00:28:53,030 --> 00:28:54,550 high stake game he's playing. 413 00:28:55,230 --> 00:28:59,230 It's an Adam Sandler movie called The Record Deal that he says is currently 414 00:28:59,230 --> 00:29:01,370 being financed in the Chicago suburbs. 415 00:29:02,050 --> 00:29:06,630 We just started talking about it and everyone kind of got caught up in the 416 00:29:06,630 --> 00:29:10,570 nonsense of thinking we were going to get rich quick. 417 00:29:11,840 --> 00:29:17,040 Bruce has entrusted his lifelong friend, Ryan Faletovich, with $28 ,000. 418 00:29:18,280 --> 00:29:22,760 And that's enough incentive to convince at least two others to jump in as well. 419 00:29:23,380 --> 00:29:24,900 There was no paperwork. 420 00:29:25,560 --> 00:29:26,580 I mean, nothing. 421 00:29:26,880 --> 00:29:30,700 We just trusted him, and that was, you know, it was that simple. I trusted him. 422 00:29:31,120 --> 00:29:36,780 In just a few weeks, Faletovich will collect nearly $1 .2 million from 18 423 00:29:36,780 --> 00:29:38,600 friends and family members. 424 00:29:39,500 --> 00:29:44,360 The investors were investing $25 ,000 at a time, $50 ,000. 425 00:29:44,900 --> 00:29:48,740 We had one investor that invested almost a quarter of a million dollars. 426 00:29:50,260 --> 00:29:54,160 Al Bruce's younger brother, Brad, hears about the deal. 427 00:29:54,880 --> 00:30:00,120 I didn't want to miss out on it. He told me I could triple my money within a 428 00:30:00,120 --> 00:30:02,580 month's time or less than a month's time. 429 00:30:03,540 --> 00:30:08,380 Brad Bruce is looking to grow his plumbing business, and he's hoping a 430 00:30:08,380 --> 00:30:10,320 return here will help pave the way. 431 00:30:11,080 --> 00:30:14,140 He gives Palatovich $100 ,000. 432 00:30:15,280 --> 00:30:17,620 It was a crazy amount of money for me to invest. 433 00:30:17,880 --> 00:30:19,740 It was more than half of what my house was worth. 434 00:30:20,360 --> 00:30:22,500 Bruce thinks the investment is safe. 435 00:30:22,720 --> 00:30:27,640 His friend Palatovich has promised everyone their money will sit untouched 436 00:30:27,640 --> 00:30:31,380 his bank account for a couple of weeks until the big payout. 437 00:30:31,850 --> 00:30:34,590 And that was the one thing he promised me. Money will never leave the account. 438 00:30:35,730 --> 00:30:42,650 But on June 15th, Falatovich changes his story and withdraws $442 ,000 439 00:30:42,650 --> 00:30:47,350 that he promptly delivers to Eric Chicago Blaxican Jaglisik. 440 00:30:47,750 --> 00:30:49,410 That's when the thing all fell apart. 441 00:30:50,650 --> 00:30:55,690 Jaglisik says the money was a gift and that he used it to buy this house in 442 00:30:55,690 --> 00:30:57,190 suburban Orland Park. 443 00:30:57,750 --> 00:31:01,090 What got me in trouble was that house right there. 444 00:31:02,030 --> 00:31:03,770 It wasn't about no movie. 445 00:31:04,090 --> 00:31:05,550 It was about no evidence. 446 00:31:05,870 --> 00:31:09,470 It was about me not living in that house. 447 00:31:10,230 --> 00:31:15,350 It's not a mansion, but for a rapper without a record deal or a day job, it's 448 00:31:15,350 --> 00:31:16,370 pretty nice pad. 449 00:31:16,910 --> 00:31:21,790 And Jaglisik quickly sets to filling it, thanks to Brian Palatowicz. 450 00:31:22,210 --> 00:31:27,410 He would literally hand him bags of cash, and Jaglisik would turn right 451 00:31:27,410 --> 00:31:28,410 and spend the money. 452 00:31:28,530 --> 00:31:30,950 Like right when you walk in, you see two big posters. 453 00:31:31,720 --> 00:31:32,639 Of me. 454 00:31:32,640 --> 00:31:33,640 Of my face. 455 00:31:34,000 --> 00:31:35,400 And it was on my album. 456 00:31:36,260 --> 00:31:37,260 It's cool. 457 00:31:37,380 --> 00:31:39,660 It's like this is my house. This is where I live. 458 00:31:39,920 --> 00:31:40,659 Come on in. 459 00:31:40,660 --> 00:31:42,160 This is Blaxican time. 460 00:31:42,880 --> 00:31:48,340 The $1 .2 million Palachowicz has collected will quickly disappear. 461 00:31:49,700 --> 00:31:54,820 His attorney says Chicago Blacksigan played gangster and threatened the deal 462 00:31:54,820 --> 00:31:57,000 would collapse if he didn't hand over the cash. 463 00:31:57,540 --> 00:32:02,000 Basically, whatever Blacksigan had to say to get Brian to part with money, he 464 00:32:02,000 --> 00:32:03,000 would say. 465 00:32:03,540 --> 00:32:08,680 Including, if you don't give it to me, then everybody loses everything, 466 00:32:08,840 --> 00:32:10,640 including all the money that you had put in before. 467 00:32:12,490 --> 00:32:18,110 Bill Harmoning says Chicago Blaxigan took that money and literally made 468 00:32:18,110 --> 00:32:19,110 at home with it. 469 00:32:19,250 --> 00:32:24,690 He spent approximately $14 ,000 to do the build -out in the basement for the 470 00:32:24,690 --> 00:32:30,790 recording studio, and then he actually equipped it with a 48 -channel mixer 471 00:32:30,790 --> 00:32:31,790 board. 472 00:32:31,950 --> 00:32:35,850 Thousands of dollars worth of speakers. It was a very nice studio that he 473 00:32:35,850 --> 00:32:36,850 installed. 474 00:32:37,610 --> 00:32:40,130 Chickalistic sharks take the plunge. 475 00:32:40,760 --> 00:32:45,000 into a new 650 -gallon tank that costs $5 ,000. 476 00:32:45,900 --> 00:32:48,900 And the sharks aren't the only exotic pets he keeps. 477 00:32:49,440 --> 00:32:53,040 Meet Danger and Dangerous. 478 00:32:53,300 --> 00:32:54,400 Two alligators. 479 00:32:54,880 --> 00:32:58,660 They were about six inches long, but they were American alligators that would 480 00:32:58,660 --> 00:33:00,220 have been eight feet at some point. 481 00:33:00,860 --> 00:33:03,660 He indicated that he was going to raise them in his crawl space. 482 00:33:04,360 --> 00:33:09,860 When you see Happy Gilmore, the movie with Adam Sadler, he had alligators in 483 00:33:09,860 --> 00:33:12,690 movie. So I said, well, I could do this too. 484 00:33:14,410 --> 00:33:20,670 In his small backyard, Jaglisik puts in a hot tub, a basketball court, and even 485 00:33:20,670 --> 00:33:23,030 commissions the installation of a swimming pool. 486 00:33:23,430 --> 00:33:27,890 They said that he had walked in with a bag of cash and asked how much to 487 00:33:27,890 --> 00:33:29,230 an in -ground pool. 488 00:33:29,790 --> 00:33:34,130 They asked him how much he had, and he said $24 ,000, and they said that's how 489 00:33:34,130 --> 00:33:35,130 much it's going to cost. 490 00:33:35,570 --> 00:33:38,910 Can't have an empty yard. A rapper needs a basketball court. 491 00:33:39,580 --> 00:33:40,580 I need a pool. 492 00:33:40,740 --> 00:33:41,940 Girls like pool. 493 00:33:43,300 --> 00:33:48,020 But his most ambitious plans run afoul of city ordinances. 494 00:33:48,440 --> 00:33:53,280 He tried to get a zoning variance to build a sniper tower up on top of his 495 00:33:53,280 --> 00:33:59,020 house and a high security fence around the front yard with his name on it, with 496 00:33:59,020 --> 00:34:03,600 Blaxican on it. And, of course, the zoning board turned him down on both. 497 00:34:04,510 --> 00:34:10,350 Jaglisik says his biggest triumph as a film producer occurs on July 30th when 498 00:34:10,350 --> 00:34:15,909 hires musician Ice -T to fly into town to rap with him at a local strip club. 499 00:34:16,290 --> 00:34:19,830 I gave Ice -T six grand through a Western union. 500 00:34:20,090 --> 00:34:25,929 I paid for his first class plane tickets, which was $2 ,700 501 00:34:26,170 --> 00:34:29,310 I paid for his limo, food, things like that. 502 00:34:30,310 --> 00:34:33,090 Special agent Harmoning will later testify. 503 00:34:33,980 --> 00:34:40,760 Jiglicic actually spends $80 ,000 for a party that only amounts to a few minutes 504 00:34:40,760 --> 00:34:41,900 of grainy footage. 505 00:34:43,040 --> 00:34:44,880 The money was all investor money. 506 00:34:45,360 --> 00:34:51,320 Eric opened up, sang a few songs, and then Ice -T came up, sang a few songs, 507 00:34:51,320 --> 00:34:52,320 that was the end of it. 508 00:34:52,760 --> 00:34:57,400 Jiglicic claims it is a key scene for the movie, but Ice -T is only visible 509 00:34:57,400 --> 00:35:01,300 during a few flashes of light, and there is no footage of him performing. 510 00:35:01,820 --> 00:35:04,950 What the f***? Man, what do you want it to be of? 511 00:35:05,690 --> 00:35:08,850 It's iced tea. That's us walking in. That's part of the movie. Now you want 512 00:35:08,850 --> 00:35:09,850 judge my movie. 513 00:35:09,970 --> 00:35:11,770 I don't give a crap. 514 00:35:12,090 --> 00:35:13,090 It's my movie. 515 00:35:13,610 --> 00:35:19,110 While Chicago Blaxigan is filming in strip clubs, investors have no idea how 516 00:35:19,110 --> 00:35:20,350 their money is being spent. 517 00:35:20,610 --> 00:35:25,570 And they anxiously press Brian Falatovich for when their big payday is 518 00:35:25,990 --> 00:35:30,150 Under growing pressure, Falatovich finally admits who his partner is. 519 00:35:30,700 --> 00:35:33,180 A 26 -year -old aspiring rapper. 520 00:35:34,080 --> 00:35:38,140 The news catches investors like Brad Bruce by surprise. 521 00:35:39,540 --> 00:35:41,040 Take a good look at me. 522 00:35:42,020 --> 00:35:45,660 Do I look like the type of guy to invest in somebody like that, a rapper? 523 00:35:46,620 --> 00:35:50,540 No. That was the most comical thing I've ever heard. 524 00:35:51,780 --> 00:35:56,260 In August, several investors track Chicago Blacksican down. 525 00:35:56,600 --> 00:35:58,460 They don't like what they hear. 526 00:35:59,260 --> 00:36:01,980 Eric provided a lot of information about the movie. 527 00:36:02,200 --> 00:36:07,940 He tried to explain to them how Hollywood worked, how these deals 528 00:36:07,940 --> 00:36:12,040 think they knew that they'd been defrauded, that he was making this stuff 529 00:36:12,740 --> 00:36:17,600 When they call Adam Sandler's production company, their fears are confirmed. 530 00:36:18,460 --> 00:36:20,460 Sandler has never heard of the movie. 531 00:36:22,520 --> 00:36:25,200 Next. I'm sorry they lost their money. 532 00:36:25,400 --> 00:36:28,200 Sorry. But it ain't got nothing to do with me. 533 00:36:29,700 --> 00:36:32,780 Chicago Blaxigan's not about to give up the money without a fight. 534 00:36:33,240 --> 00:36:36,080 I got this check, I got this house, and that's that. 535 00:36:49,200 --> 00:36:50,320 October 2006. 536 00:36:51,500 --> 00:36:56,860 Concerned investors tell Illinois securities agent Bill Harmoning about a 537 00:36:56,860 --> 00:36:59,940 million movie -making scam in the Chicago suburbs. 538 00:37:00,640 --> 00:37:05,500 Harmoning turns to Eric Jaglisik and Brian Falotovich for answers. 539 00:37:06,020 --> 00:37:09,720 Most of the cases we work, people will take steps to hide what they're doing. 540 00:37:10,060 --> 00:37:12,060 These guys took no steps whatsoever. 541 00:37:12,720 --> 00:37:15,580 Everything in this house is pretty much stolen. 542 00:37:15,940 --> 00:37:21,410 Thanks to videos Eric, Chicago Blacksic, and Jaglisik has created, Harmoning has 543 00:37:21,410 --> 00:37:23,070 no trouble tracking him down. 544 00:37:24,190 --> 00:37:29,230 Over the phone, Deglesig denies he's producing a movie with actor Adam 545 00:37:30,170 --> 00:37:35,870 He told me he had never told anyone about a movie deal, didn't know what I 546 00:37:35,870 --> 00:37:37,910 talking about, denied any knowledge of it. 547 00:37:38,370 --> 00:37:42,610 But Harmoning's seen and heard enough to believe otherwise. 548 00:37:42,850 --> 00:37:46,630 He prepares to execute a seizure warrant at Deglesig's house. 549 00:37:47,820 --> 00:37:52,880 To motivate his officers, Harmoning plays tracks from Chicago Blaxican's 550 00:37:52,880 --> 00:37:57,140 album, Suburban Police Are Nerds Who Became Cops. 551 00:37:57,540 --> 00:38:03,180 Is it just me, or is it a big coincidence that every suburban cop is 552 00:38:03,180 --> 00:38:07,760 short, fat, ugly, or got a $10 haircut? 553 00:38:08,240 --> 00:38:12,700 I made sure that about 15 suburban cops went with me, and I let them listen to 554 00:38:12,700 --> 00:38:16,120 that CD before we went. So they had a good time. 555 00:38:17,120 --> 00:38:18,120 Helping out that day. 556 00:38:19,060 --> 00:38:23,380 Once inside, they seized almost everything Jeklisik owns. 557 00:38:24,060 --> 00:38:29,900 We seized a number of televisions. We seized some very high -end recording 558 00:38:29,900 --> 00:38:31,520 equipment and stereo equipment. 559 00:38:31,820 --> 00:38:36,480 We seized in the garage a number of arcade games, pool table. 560 00:38:37,500 --> 00:38:44,180 The house, hot tub, sauna, Hummer, even the pet sharks are all taken to pay back 561 00:38:44,180 --> 00:38:45,180 investors. 562 00:38:45,640 --> 00:38:51,140 And at the end of that day, he ended where he began. He had his clothes and 563 00:38:51,140 --> 00:38:52,340 dog, and that was about it. 564 00:38:54,280 --> 00:38:59,880 And Blacksican's two baby alligators that he once dreamed of displaying in 565 00:38:59,880 --> 00:39:00,880 crawl space? 566 00:39:01,280 --> 00:39:05,740 Alligators are contraband, so you can't legally have them in Illinois. 567 00:39:06,040 --> 00:39:07,980 They were eventually released in Florida. 568 00:39:09,040 --> 00:39:13,040 Right now, every time I see someone dies in Florida from alligators, that could 569 00:39:13,040 --> 00:39:14,040 be that. 570 00:39:15,070 --> 00:39:19,990 Confronted by Harmoning, the rapper and his partner, Brian Falatovich, turn on 571 00:39:19,990 --> 00:39:20,990 each other. 572 00:39:21,410 --> 00:39:25,710 Falatovich, through his lawyer, says he's only guilty of trusting the wrong 573 00:39:25,710 --> 00:39:31,510 person. Eric misled Brian Falatovich, and Brian Falatovich so believed 574 00:39:31,510 --> 00:39:37,810 everything that he heard that he sold this bill of goods to 575 00:39:37,810 --> 00:39:41,110 his friends, family, everybody he knew. 576 00:39:42,640 --> 00:39:47,860 Teglesek says he never promised investors any returns from the movie, 577 00:39:47,860 --> 00:39:49,580 200 to 400 percent. 578 00:39:49,820 --> 00:39:51,880 That was all Falatovich. 579 00:39:52,460 --> 00:39:54,220 Who deposited the money? 580 00:39:54,800 --> 00:39:55,800 Not me. 581 00:39:55,940 --> 00:39:57,380 Who withdrew the money? 582 00:39:57,800 --> 00:40:03,040 Not me. Who promised all these people that this money is not going to go 583 00:40:03,040 --> 00:40:04,040 anywhere? 584 00:40:04,300 --> 00:40:05,300 Not me. 585 00:40:06,030 --> 00:40:10,030 There are no contracts or paperwork to support either's claims. 586 00:40:10,390 --> 00:40:15,890 But Jaglisik does offer one document he says definitively clears him of blame. A 587 00:40:15,890 --> 00:40:20,950 four -sentence paper he says Faletovich signed the day after Jaglisik's house 588 00:40:20,950 --> 00:40:23,090 was seized in November 2006. 589 00:40:23,970 --> 00:40:26,030 Eric Jaglisik has nothing. 590 00:40:26,920 --> 00:40:29,220 Big, black, bold letters and brackets. 591 00:40:29,880 --> 00:40:32,840 Nothing to do with any securities fraud whatsoever. 592 00:40:33,220 --> 00:40:36,020 I gave him this check out of my own money. 593 00:40:36,920 --> 00:40:37,920 Signed. 594 00:40:38,380 --> 00:40:39,380 Notarized. 595 00:40:39,820 --> 00:40:42,140 Signature. This is my proof. 596 00:40:43,260 --> 00:40:48,440 Brian Falatovich's name is misspelled. And when the letter is found, they're 597 00:40:48,440 --> 00:40:49,780 charged with perjury. 598 00:40:50,850 --> 00:40:56,590 Eric Chicago Blaxican -Diglesik and Brian Palatovich are indicted in June 599 00:40:56,590 --> 00:41:00,250 on 27 counts of theft and securities fraud. 600 00:41:01,570 --> 00:41:08,190 In March 2008, Chicago Blaxican pleads guilty and serves two and a half years 601 00:41:08,190 --> 00:41:14,470 state prison for a short time getting what he wanted all along, a house with a 602 00:41:14,470 --> 00:41:15,470 sniper tower. 603 00:41:16,080 --> 00:41:19,260 When he was going to prison, I said the good news is you're going to have some 604 00:41:19,260 --> 00:41:22,660 street cred now because you're going to have prison time. I said the bad news is 605 00:41:22,660 --> 00:41:23,820 it's for security's fraud. 606 00:41:24,520 --> 00:41:31,080 In November 2008, Brian Palatovich also pleads guilty and serves 19 months in 607 00:41:31,080 --> 00:41:32,080 prison. 608 00:41:32,240 --> 00:41:37,840 Today, friends like Al and Brad Bruce say they've forgiven him for his role in 609 00:41:37,840 --> 00:41:38,840 stealing their money. 610 00:41:39,080 --> 00:41:42,660 At the end of the day, I don't think he set out to steal from me. 611 00:41:43,700 --> 00:41:48,240 I think it's just he got carried away with some bad decisions. 612 00:41:49,140 --> 00:41:51,200 The only thing he was guilty of was being naive. 613 00:41:51,400 --> 00:41:56,340 He just, he got caught up in it, and he didn't investigate it more himself. 614 00:41:57,700 --> 00:41:59,760 But Harmoning is less forgiving. 615 00:42:00,140 --> 00:42:05,520 He says Faletovich played the key role of luring investors in. I think without 616 00:42:05,520 --> 00:42:08,880 him, this never could have happened, because I don't think anyone would have 617 00:42:08,880 --> 00:42:11,180 believed Eric Jiglicic for a minute. 618 00:42:11,920 --> 00:42:16,400 Do you believe incarceration really leads to rehabilitation? 619 00:42:17,160 --> 00:42:23,180 And Eric Chicago Blaxican Jaglicic? Now out of prison, he hopes to file a 620 00:42:23,180 --> 00:42:25,320 clemency petition and clear his name. 621 00:42:25,980 --> 00:42:31,100 He's still chasing his rap dreams, but for now, his options are limited. 622 00:42:31,580 --> 00:42:34,440 I tried to get a job at Menards, Home Depot, 623 00:42:35,320 --> 00:42:38,860 Party City, McDonald's, just for kicks. 624 00:42:39,360 --> 00:42:41,140 They all said, no, you have a felon. 625 00:42:42,090 --> 00:42:44,770 So what do you want me to do now? Make another movie? 626 00:42:45,470 --> 00:42:46,610 I might as well. 627 00:42:48,010 --> 00:42:50,310 I'm stressed the fuck out. 628 00:42:50,990 --> 00:42:55,070 Vegas sports betting expert Steve Stevens has a whale on the line. I will 629 00:42:55,070 --> 00:42:56,270 him Mr. B for billion. 630 00:42:56,730 --> 00:43:00,770 And VIP's best agent gets reeled into the worst of Vegas. 631 00:43:01,670 --> 00:43:03,630 Are you kidding me? 632 00:43:04,290 --> 00:43:06,550 Money Talks, all new right now.