1 00:00:02,640 --> 00:00:09,600 In this episode of American Greed, New Age evangelist Lydia Kladek says she can 2 00:00:09,600 --> 00:00:12,240 awaken minds to untold riches. 3 00:00:12,540 --> 00:00:18,440 But her promise of big returns buying up auto loans isn't just mystical, it's 4 00:00:18,440 --> 00:00:22,860 unlawful. When these investors are really putting money in Lydia's pocket. 5 00:00:23,280 --> 00:00:28,440 And even an army sniper can't defend himself against this greedy guru. 6 00:00:29,220 --> 00:00:31,960 The threat is right there, wears a little dress. 7 00:00:32,570 --> 00:00:34,890 wears a big smile, and that's the thread. 8 00:00:35,210 --> 00:00:41,330 And later, South Carolina silver dealer Ron Wilson is sounding the alarm on the 9 00:00:41,330 --> 00:00:42,330 U .S. economy. 10 00:00:42,590 --> 00:00:45,230 Ron predicted essentially the end of the world. 11 00:00:45,610 --> 00:00:51,930 Nearly 8 million investors hear his call and fork over $90 million to invest in 12 00:00:51,930 --> 00:00:53,430 the red -hot metals market. 13 00:00:54,150 --> 00:00:58,570 But when it comes time to collect, they find that they're the ones who've been 14 00:00:58,570 --> 00:00:59,570 burned. 15 00:01:00,270 --> 00:01:04,709 This guy was a slick snake oil salesman, except there was never even snake oil. 16 00:01:04,810 --> 00:01:05,810 That's what makes it worse. 17 00:01:24,610 --> 00:01:28,750 It's the spring of 2010 in St. Augustine, Florida. 18 00:01:30,060 --> 00:01:33,160 And Staff Sergeant Kevin Crowell wants his money. 19 00:01:34,340 --> 00:01:41,160 The Army sniper invested $50 ,000 with Lydia Kladek, a local businesswoman 20 00:01:41,160 --> 00:01:44,320 who says she makes big profits buying auto loans. 21 00:01:46,080 --> 00:01:49,400 But Kladek isn't making good on her promises. 22 00:01:49,660 --> 00:01:54,080 When Staff Sergeant Crowell shows up at her office to demand his money in 23 00:01:54,080 --> 00:01:56,660 person, he gets a cold welcome. 24 00:01:58,070 --> 00:02:02,490 One gentleman after another came from the accounting side of the house, and 25 00:02:02,490 --> 00:02:08,610 stood there with their arms crossed, and their most, I guess they were trying to 26 00:02:08,610 --> 00:02:09,690 be opposing -looking. 27 00:02:10,490 --> 00:02:15,750 If the accountants expect to intimidate Crowell, they're talking to the wrong 28 00:02:15,750 --> 00:02:16,750 war veteran. 29 00:02:16,970 --> 00:02:20,570 I've spent my entire life in the military dealing with tough guys all 30 00:02:20,570 --> 00:02:22,130 world, so it's like this was fun. 31 00:02:23,420 --> 00:02:28,660 As the exchange intensifies, the receptionist threatens to call the 32 00:02:29,680 --> 00:02:32,320 And I said, that's a brilliant idea. Call the police. 33 00:02:32,580 --> 00:02:36,280 Please call law enforcement and tell them you won't give me my money. 34 00:02:36,860 --> 00:02:41,200 And then the tough guy with his arms crossed said in a very non -threatening 35 00:02:41,200 --> 00:02:43,080 manner, no, no, no, that's not necessary. 36 00:02:43,380 --> 00:02:44,820 We don't need to involve the authorities. 37 00:02:45,420 --> 00:02:48,060 And I kind of wondered, I was like, why wouldn't you? 38 00:02:48,420 --> 00:02:51,900 Why wouldn't you? If you are worried about me, why wouldn't you involve the 39 00:02:51,900 --> 00:02:52,900 authorities? 40 00:02:53,040 --> 00:02:59,060 By the time Staff Sergeant Crowell walks into Kladek's office, she owes 41 00:02:59,060 --> 00:03:05,960 $113 million to investors throughout the United States. Her specialty auto 42 00:03:05,960 --> 00:03:11,180 finance company has a collection of savvy clients, including seasoned 43 00:03:11,740 --> 00:03:15,680 mutual fund managers, and multimillionaires. 44 00:03:16,720 --> 00:03:22,000 But the cornerstone of her business is laid in living rooms. 45 00:03:22,560 --> 00:03:28,820 like this one just outside of St. Augustine, Florida, where Jane Edney and 46 00:03:28,820 --> 00:03:31,780 women's social group have biweekly gatherings. 47 00:03:33,180 --> 00:03:40,120 It's just the wives, no husbands involved, and we sit around and have 48 00:03:40,120 --> 00:03:42,620 and hors d 'oeuvres. That's it, every other week. 49 00:03:44,000 --> 00:03:50,320 In 2000, the group welcomes a new resident to the club, Lydia Kladek. 50 00:03:51,310 --> 00:03:55,650 I remember very well the first day I ever saw her. She was brought to our 51 00:03:55,650 --> 00:03:57,170 because she had moved into the community. 52 00:03:57,470 --> 00:04:04,410 She was a very quiet, unassuming lady, tiny, very small, and she 53 00:04:04,410 --> 00:04:05,410 just looked helpless. 54 00:04:05,890 --> 00:04:09,450 So I went over and talked to her. She was charming, just charming. 55 00:04:09,970 --> 00:04:15,070 As Kladek integrates into the group, she eventually mentions that she owns a 56 00:04:15,070 --> 00:04:18,450 company named Lydia Kladek Incorporated. 57 00:04:18,890 --> 00:04:21,649 that has a way of turning car loans into gold. 58 00:04:21,970 --> 00:04:27,510 She says that her company uses investor money to buy high -interest -rate auto 59 00:04:27,510 --> 00:04:31,910 loans from car lots and then collects the payments on those loans. 60 00:04:33,590 --> 00:04:39,750 According to Orlando attorney John Kane, it's an established business model in 61 00:04:39,750 --> 00:04:40,750 the finance industry. 62 00:04:41,170 --> 00:04:43,470 There are businesses that do it very successfully. 63 00:04:44,040 --> 00:04:48,900 In fact, there are some major players who, you know, some large banks who do 64 00:04:48,900 --> 00:04:53,720 very successfully. If you manage it right, I think that 10 % return is not 65 00:04:53,720 --> 00:04:54,720 unreasonable. 66 00:04:56,840 --> 00:04:58,660 Kladek says she can do better. 67 00:05:00,900 --> 00:05:06,660 She says that by purchasing the loans and then servicing them, the 29 % 68 00:05:06,660 --> 00:05:11,280 rates being paid by the car buyers will pay enough for her to earn a hefty 69 00:05:11,280 --> 00:05:12,280 profit. 70 00:05:12,750 --> 00:05:18,890 As well as pass along a 15 to 20 percent interest rate to the investor. 71 00:05:19,890 --> 00:05:22,010 A lot of money put into that. 72 00:05:22,230 --> 00:05:27,010 With the women's social group, she couldn't have found a more receptive 73 00:05:27,010 --> 00:05:28,010 audience. 74 00:05:28,490 --> 00:05:34,210 Here were 30 ladies, most of us either retired 75 00:05:34,210 --> 00:05:41,050 widows in many cases, all of us fairly affluent, able to invest 76 00:05:41,050 --> 00:05:45,760 money. And she made friends, and it was just like hitting the jackpot. 77 00:05:47,020 --> 00:05:52,040 Edney makes a comfortable living leasing out a commercial property in Louisiana. 78 00:05:54,460 --> 00:06:01,060 But in the late summer of 2005, a natural disaster leads to a 79 00:06:01,060 --> 00:06:02,060 financial one. 80 00:06:06,410 --> 00:06:10,830 When Katrina hit, it kind of wiped out some of my income because I had a 81 00:06:10,830 --> 00:06:15,810 building in New Orleans, and it filled up with mud. And I knew it was going to 82 00:06:15,810 --> 00:06:18,310 take a long time to get anything back from that building. 83 00:06:19,790 --> 00:06:25,750 Edney takes $100 ,000 from her savings and brings it to Lydia Kladek's humble 84 00:06:25,750 --> 00:06:32,170 offices in this converted house in St. Augustine, where Kladek promises her... 85 00:06:32,410 --> 00:06:34,770 a 15 % annual return. 86 00:06:35,570 --> 00:06:41,950 Her desk was two saw horses with a wooden door on the top, an unfinished 87 00:06:41,950 --> 00:06:48,430 door, covered with papers and a big cat sleeping on one end of it. 88 00:06:48,710 --> 00:06:52,570 Now, you've got to trust somebody that has that kind of a situation. 89 00:06:54,270 --> 00:06:59,390 Before long, more than a dozen women in the neighborhood are invested with Lydia 90 00:06:59,390 --> 00:07:00,830 Kladek Incorporated. 91 00:07:01,760 --> 00:07:03,580 Every one of them is happy. 92 00:07:05,120 --> 00:07:07,440 I got a beautiful check every month. 93 00:07:07,800 --> 00:07:13,020 Didn't even think about it not being a perfectly honest, safe, secure thing. 94 00:07:13,520 --> 00:07:16,740 Because when you knew Lydia, you trusted her. It was just that simple. 95 00:07:18,660 --> 00:07:20,220 Lee Caesar agrees. 96 00:07:20,860 --> 00:07:25,420 She is not a member of the neighborhood women's group, but also lives in St. 97 00:07:25,580 --> 00:07:28,440 Augustine, where she suffers from emphysema. 98 00:07:29,640 --> 00:07:33,820 She meets Kladek in the late 90s at a local New Age church. 99 00:07:35,040 --> 00:07:40,860 Caesar says that Kladek embodies the church's message, that harmony with the 100 00:07:40,860 --> 00:07:45,640 universe is the key to reaching each person's highest potential. 101 00:07:46,200 --> 00:07:49,640 I never heard a bad word said about her. I never heard her say a bad word about 102 00:07:49,640 --> 00:07:54,300 anyone. If something negative would happen, she would always turn it into a 103 00:07:54,300 --> 00:07:55,300 positive. 104 00:07:55,920 --> 00:08:02,120 Caesar invests all her savings in Kladek's business as she begins to 105 00:08:02,120 --> 00:08:03,120 her retirement. 106 00:08:03,740 --> 00:08:08,820 Then, in 2000, Kladek asks Caesar to start working at her company. 107 00:08:09,100 --> 00:08:12,660 For Caesar, it's as if the stars had aligned. 108 00:08:13,380 --> 00:08:16,160 I thought she was the best thing that ever happened in my life. 109 00:08:16,900 --> 00:08:18,180 She was a good friend. 110 00:08:18,640 --> 00:08:21,700 She was making me all kinds of money. She was very good to me. 111 00:08:22,120 --> 00:08:23,580 I loved her dearly. 112 00:08:24,840 --> 00:08:30,900 Soon after Caesar joins Lydia Claddock Incorporated, the company explodes in 113 00:08:30,900 --> 00:08:37,120 size. By 2007, Claddock has raised $58 million from investors. 114 00:08:38,539 --> 00:08:43,799 As word spreads outside of her church and women's groups to the movers and 115 00:08:43,799 --> 00:08:49,820 shakers of St. Augustine, who in turn have connections all over the country, 116 00:08:49,820 --> 00:08:55,120 moves her office from a cluster of converted houses to a new two -story 117 00:08:55,120 --> 00:08:56,120 building. 118 00:08:56,360 --> 00:09:01,700 It was an exquisitely done office, and that made us feel good. When she made 119 00:09:01,700 --> 00:09:02,820 money, we made money. 120 00:09:04,100 --> 00:09:09,100 Unfortunately, that's not just positive thinking, the way Klydeck runs her 121 00:09:09,100 --> 00:09:11,180 business. It's wishful thinking. 122 00:09:11,820 --> 00:09:17,980 In order to sustain the investment scheme, she would have to pay back 15 to 123 00:09:17,980 --> 00:09:18,980 percent a month. 124 00:09:19,760 --> 00:09:24,180 Although those car loans are earning interest at 29%, remember, it's not 125 00:09:24,180 --> 00:09:28,320 into account the cost of repossession, the cost of employees, the cost of 126 00:09:28,320 --> 00:09:29,320 management. 127 00:09:29,460 --> 00:09:34,280 So it wasn't reasonable to expect a return of 15 % to 18%, and certainly not 128 00:09:34,280 --> 00:09:39,860 guaranteed return of 15 % to 18%. There are very few guarantees in life, and 129 00:09:39,860 --> 00:09:42,080 there are even fewer guarantees in investments. 130 00:09:43,240 --> 00:09:47,240 But Kladek believes in turning negatives into positives. 131 00:09:48,060 --> 00:09:51,340 even if it means engaging in fraud to do it. 132 00:09:52,200 --> 00:09:57,640 When American Greed returns, Kladek's lifestyle seems to affirm her philosophy 133 00:09:57,640 --> 00:10:01,320 and even gets an Army sniper to let his guard down. 134 00:10:02,180 --> 00:10:06,000 In the military, we say you got the warming fuzzy, you felt good with it, 135 00:10:06,000 --> 00:10:07,680 that's how it happened with me. 136 00:10:19,280 --> 00:10:24,860 Hello, my name is Lydia Kladek, and I am the proud, happy, and grateful founder 137 00:10:24,860 --> 00:10:27,120 of Lydia Kladek, Incorporated. 138 00:10:29,420 --> 00:10:35,440 In St. Augustine, Florida, new age guru Lydia Kladek is running a seemingly 139 00:10:35,440 --> 00:10:40,880 successful auto financing company that she built from the ground up. By the end 140 00:10:40,880 --> 00:10:47,060 of 2009, she has more than 2 ,000 investors with over $100 million 141 00:10:48,780 --> 00:10:54,880 And as this video she makes for her employees shows, she credits her success 142 00:10:54,880 --> 00:10:58,080 the same philosophy in which she lives her life. 143 00:10:58,400 --> 00:11:04,480 I wanted to have a company based on principles and values of how we know 144 00:11:04,480 --> 00:11:07,300 can be and what life can be like to work together. 145 00:11:09,020 --> 00:11:14,660 Unfortunately, Kladek's positive thinking isn't matched by her positive 146 00:11:15,470 --> 00:11:19,550 It takes a lot of work to make sure that you know where those cars are at all 147 00:11:19,550 --> 00:11:23,610 times, make sure your borrower doesn't disappear, make sure the car doesn't get 148 00:11:23,610 --> 00:11:28,790 destroyed. All of those things need to be covered, and I think that's where the 149 00:11:28,790 --> 00:11:30,370 business portion fell short. 150 00:11:31,710 --> 00:11:33,970 Falling short is an understatement. 151 00:11:34,990 --> 00:11:39,750 According to John Kane, who comes to represent the investors of Lydia Kladek 152 00:11:39,750 --> 00:11:42,470 Incorporated, by the end of 2009, 153 00:11:43,390 --> 00:11:46,450 Kladek is running a $90 million deficit. 154 00:11:47,330 --> 00:11:52,330 Nevertheless, as long as she can convince new investors to have faith in 155 00:11:52,510 --> 00:11:57,110 she can use their money to pay the interest on previous investments. 156 00:11:57,730 --> 00:12:01,970 Listen with an open heart and see where your heart takes you. 157 00:12:02,930 --> 00:12:04,630 Welcome to Lydia Kladek. 158 00:12:06,650 --> 00:12:09,390 It even makes Kladek roll her eyes. 159 00:12:11,440 --> 00:12:16,120 With her scam running at full force, bringing in tens of millions of dollars 160 00:12:16,120 --> 00:12:21,260 year, she's siphoning off a big chunk all for herself. 161 00:12:21,840 --> 00:12:26,820 It just seemed like there was a funnel above her house with money flowing into 162 00:12:26,820 --> 00:12:28,500 it to fill the house with things. 163 00:12:29,460 --> 00:12:34,620 Heather Soffeld begins working for Kladek as her personal assistant in 164 00:12:35,820 --> 00:12:41,560 As Kladek moves into a new 5 ,700 -square -foot mansion in a gated 165 00:12:41,560 --> 00:12:43,720 called Sea Colony. 166 00:12:44,980 --> 00:12:50,240 It was beautiful. Arts and crafts style, custom stained glass, chandelier hung 167 00:12:50,240 --> 00:12:51,240 in the front hall. 168 00:12:51,660 --> 00:12:56,920 The lap pool flowed into a regular -sized pool. The highest -end things 169 00:12:56,920 --> 00:12:57,920 I've ever seen. 170 00:12:59,140 --> 00:13:01,340 Magnificent. Absolutely magnificent. 171 00:13:02,040 --> 00:13:04,860 And I commended her. I said, how wonderful. 172 00:13:06,030 --> 00:13:12,650 I was looking around in awe, and I said, how did you do this? And she just said, 173 00:13:12,770 --> 00:13:14,390 one foot in front of the other. 174 00:13:15,370 --> 00:13:16,870 That was her answer. 175 00:13:17,390 --> 00:13:21,670 We have within ourselves the ability to create the life that we desire. 176 00:13:22,350 --> 00:13:26,670 It did kind of have a weird vibe because it did make you wonder, how are these 177 00:13:26,670 --> 00:13:31,310 people this happy? They're at work. That was a bad day right there. 178 00:13:31,590 --> 00:13:34,790 Kevin Kroll is the recipient of the Purple Heart. 179 00:13:35,180 --> 00:13:40,020 and two combat infantry badges as a staff sergeant for the U .S. Army. 180 00:13:40,960 --> 00:13:46,280 After serving a year as a sniper in Iraq, where he was hit by roadside bombs 181 00:13:46,280 --> 00:13:52,040 five separate occasions, he now lives in St. Augustine, where he suffers from 182 00:13:52,040 --> 00:13:56,720 post -traumatic stress disorder and struggles to deal with everyday civilian 183 00:13:56,720 --> 00:13:57,720 life. 184 00:13:58,920 --> 00:14:03,180 It's the hardest thing ever. The transition is unbelievable because 185 00:14:03,180 --> 00:14:07,080 from In an environment where you have to survive, you have to trust your buddies 186 00:14:07,080 --> 00:14:11,800 to coming back to not so much focus on how I'm going to get through today and 187 00:14:11,800 --> 00:14:15,080 hopefully I'll see the sun come up tomorrow, but how am I going to provide 188 00:14:15,080 --> 00:14:17,880 my wife? How am I going to make ends meet? 189 00:14:18,480 --> 00:14:23,140 He thinks those questions may be answered when his wife hears about a 190 00:14:23,140 --> 00:14:27,400 investment opportunity called Lydia Kladek Incorporated. 191 00:14:28,580 --> 00:14:29,860 We met with Lydia. 192 00:14:30,460 --> 00:14:35,980 We stressed to her how hard the money that we had, you know, how we saved it 193 00:14:35,980 --> 00:14:39,220 from being in the desert, saved it from my deployment. 194 00:14:39,720 --> 00:14:44,380 She confided in us that, you know, she understood and she would take good care 195 00:14:44,380 --> 00:14:45,380 of us. 196 00:14:47,080 --> 00:14:53,520 He takes $30 ,000 he saved risking his life in the deserts of the Middle East 197 00:14:53,520 --> 00:14:56,400 and hands it over to Lydia Claddock. 198 00:14:59,880 --> 00:15:04,940 With it, he hopes he can now have the security he believes he's earned. 199 00:15:08,260 --> 00:15:13,620 The way I looked at it was, I fought for my life for that money, for that future 200 00:15:13,620 --> 00:15:17,720 of a life that we could sleep well at night knowing we had money in the bank. 201 00:15:18,520 --> 00:15:24,220 For two years, Kroll and his wife get their interest payments every month, 202 00:15:24,220 --> 00:15:25,220 on time. 203 00:15:26,000 --> 00:15:27,840 But in December of 2009, 204 00:15:28,670 --> 00:15:30,170 Their payment comes in late. 205 00:15:30,770 --> 00:15:33,390 The following month, it's even worse. 206 00:15:34,670 --> 00:15:37,190 January rolled in, no interest payment. 207 00:15:37,430 --> 00:15:40,910 And that's when I started questioning things, and I got nervous. 208 00:15:41,130 --> 00:15:44,530 And I called the company up again, and they said it'll be there as soon as it 209 00:15:44,530 --> 00:15:45,429 can. 210 00:15:45,430 --> 00:15:46,630 It never happened. 211 00:15:47,510 --> 00:15:49,130 When American Greed returns, 212 00:15:49,970 --> 00:15:54,530 Lydia Kladek's business isn't the only thing disintegrating. It appears her 213 00:15:54,530 --> 00:15:56,050 mental state is as well. 214 00:15:57,160 --> 00:16:00,440 She started to act very strange. She was doing weird things. 215 00:16:00,780 --> 00:16:01,920 She was chanting. 216 00:16:09,160 --> 00:16:09,880 By 217 00:16:09,880 --> 00:16:16,760 the 218 00:16:16,760 --> 00:16:21,360 end of 2009, Lydia Kladek's fraud is reaching its end. 219 00:16:22,440 --> 00:16:27,800 She's been promising and delivering 15 % interest on thousands of people's 220 00:16:27,800 --> 00:16:29,980 investments over the past decade. 221 00:16:30,400 --> 00:16:33,300 But she can't keep up with the payments anymore. 222 00:16:33,500 --> 00:16:37,360 It appears the pressure is taking its toll. 223 00:16:38,100 --> 00:16:40,280 She didn't act stressed. 224 00:16:40,620 --> 00:16:44,580 What she did was act strange. 225 00:16:46,220 --> 00:16:51,340 She had meetings that I was told five minutes of business and the rest were... 226 00:16:52,060 --> 00:16:56,140 If you asked her a question, she would just fold her arms and smile at you 227 00:16:56,140 --> 00:16:58,100 without any words. 228 00:16:59,620 --> 00:17:03,920 If that was an act, I don't know. Or maybe she was going off the deep end. I 229 00:17:03,920 --> 00:17:04,920 don't know. 230 00:17:05,040 --> 00:17:08,760 Yeah, that's right. She couldn't get out of it. She was too far in debt. 231 00:17:09,099 --> 00:17:14,740 Jane Edney has $100 ,000 invested with Kladek for nearly four years. 232 00:17:15,819 --> 00:17:21,290 In the fall of 2009, she and several women from their group don't get the 233 00:17:21,290 --> 00:17:23,890 monthly interest payment they've become accustomed to. 234 00:17:26,230 --> 00:17:30,270 Kladek comes to the group's next meeting and urges patience. 235 00:17:31,490 --> 00:17:35,230 Give her a chance. She'll build it back up. See, we believed. 236 00:17:35,510 --> 00:17:42,110 Boy, did she do a job on us. She was just sitting there so timid, and 237 00:17:42,110 --> 00:17:43,450 that was her way. 238 00:17:43,810 --> 00:17:46,270 You just felt sorry for her. 239 00:17:47,150 --> 00:17:51,710 You didn't know she was stealing you blind when she was being so sweet. 240 00:17:54,110 --> 00:17:58,670 Eventually, enough people don't receive their payments, and they get law 241 00:17:58,670 --> 00:17:59,670 enforcement involved. 242 00:18:00,210 --> 00:18:06,890 In the spring of 2010, the FBI raids Kladex offices, and most everyone 243 00:18:06,890 --> 00:18:09,010 in St. Augustine knows about it. 244 00:18:09,390 --> 00:18:14,130 I stood out there, and I cheered them on. I cheered them on. 245 00:18:14,670 --> 00:18:17,510 I think I even offered them if they needed coffee, I'd go get it for them so 246 00:18:17,510 --> 00:18:19,030 they could stay up late and work all night. 247 00:18:19,930 --> 00:18:24,130 But not all observers are so excited to see the FBI. 248 00:18:25,290 --> 00:18:29,170 Her supporters are out there, her people that go to her church. 249 00:18:29,490 --> 00:18:34,130 They're all defending her, saying she's a wonderful person and we're evil, we're 250 00:18:34,130 --> 00:18:36,170 mean for saying bad things about her. 251 00:18:36,590 --> 00:18:38,370 I don't personally have any issue. 252 00:18:38,610 --> 00:18:41,890 I don't care if she's spiritual, if she's... 253 00:18:42,160 --> 00:18:45,520 hung out with the Dalai Lama. I mean, that's all fine, but I just wanted my 254 00:18:45,520 --> 00:18:46,520 money back. 255 00:18:47,640 --> 00:18:54,480 Despite her supporters' objections, on November 19, 2010, Kladek is indicted 256 00:18:54,480 --> 00:18:57,160 on 14 counts related to the fraud. 257 00:18:58,540 --> 00:19:05,200 The case goes to trial, and on January 26, 2012, a jury finds her 258 00:19:05,200 --> 00:19:07,580 guilty on all 14 counts. 259 00:19:08,920 --> 00:19:15,510 As she prepares for sentencing, Her faith in positive thinking crosses over 260 00:19:15,510 --> 00:19:16,510 the delusional. 261 00:19:17,670 --> 00:19:23,670 She actually puts together a very detailed presentation as to how she can 262 00:19:23,670 --> 00:19:27,190 the investors from jail. 263 00:19:28,850 --> 00:19:34,470 It was a plan where she was taking her $14 ,000 a year social security income 264 00:19:34,470 --> 00:19:38,790 and she was able to convert that somehow into $80 million over the next 10 265 00:19:38,790 --> 00:19:39,790 years. 266 00:19:40,730 --> 00:19:44,970 Seems kind of incredible to me, but that was her plan. 267 00:19:46,090 --> 00:19:50,970 The judge doesn't buy it, and neither do the members of the women's social 268 00:19:50,970 --> 00:19:55,350 group, who travel to Jacksonville to observe the sentencing. 269 00:19:56,030 --> 00:20:01,070 When Kladek addresses the court, they see a side of her they've never seen 270 00:20:01,070 --> 00:20:02,070 before. 271 00:20:02,710 --> 00:20:04,870 They had to pull the microphone down. 272 00:20:05,520 --> 00:20:12,100 And she came out with the most horrible scream I have ever heard in my life. 273 00:20:12,640 --> 00:20:17,020 I didn't do it. I didn't take the money. You're liars. 274 00:20:17,980 --> 00:20:19,960 I had never heard her raise her voice. 275 00:20:20,640 --> 00:20:23,140 So we were in shock when she said that. 276 00:20:24,520 --> 00:20:27,320 So that was the true Lydia Kladek. 277 00:20:28,880 --> 00:20:32,700 The judge sentences Kladek to 30 years in prison. 278 00:20:34,250 --> 00:20:39,130 If she plans to earn back the millions of dollars she owes to the investors 279 00:20:39,130 --> 00:20:44,490 she is let out, she won't be able to start until she is 98 years old. 280 00:20:47,070 --> 00:20:52,110 Jane Etney eventually gets an insurance payment for her commercial property that 281 00:20:52,110 --> 00:20:57,470 was destroyed in Hurricane Katrina and has enough money to live comfortably. 282 00:20:57,970 --> 00:21:03,170 Many in her group are not as fortunate, but they have managed to keep together. 283 00:21:04,400 --> 00:21:07,640 It brought me closer to the ladies. 284 00:21:08,340 --> 00:21:14,360 You know, I felt as though I'm not by myself. At first, I didn't want to talk 285 00:21:14,360 --> 00:21:15,360 about it. 286 00:21:16,940 --> 00:21:20,020 Lee Caesar didn't just lose her investment. 287 00:21:20,260 --> 00:21:23,580 Her entire world is turned upside down. 288 00:21:24,220 --> 00:21:25,500 I was a friend. 289 00:21:26,260 --> 00:21:28,380 I was an investor. I was an employee. 290 00:21:28,640 --> 00:21:29,820 And now I'm a victim. 291 00:21:30,980 --> 00:21:36,180 Caesar continued to invest her savings with Kladek through the years she worked 292 00:21:36,180 --> 00:21:41,540 for her, even refinancing her house to invest the equity with Kladek. 293 00:21:42,720 --> 00:21:46,140 Now the money's gone, and her home is in foreclosure. 294 00:21:46,940 --> 00:21:52,800 At 78 years old and in poor health, she needs to try to find work to pay back 295 00:21:52,800 --> 00:21:53,800 her debts. 296 00:21:54,420 --> 00:21:58,200 I'm on poverty -level Social Security with food stamps. 297 00:21:58,700 --> 00:22:00,040 So that's where I am. 298 00:22:00,750 --> 00:22:02,590 And she's living in a cell. 299 00:22:02,910 --> 00:22:08,970 Sure, she doesn't have freedom, but she's got everything taken care of. 300 00:22:08,970 --> 00:22:10,350 got three hearts in a cart, they say. 301 00:22:11,610 --> 00:22:15,650 People like me are out here scrounging around trying to make ends meet. It 302 00:22:15,650 --> 00:22:16,650 doesn't make any sense. 303 00:22:17,030 --> 00:22:18,110 So now I'm angry. 304 00:22:22,570 --> 00:22:24,450 I'm angry that a friend did this to me. 305 00:22:27,790 --> 00:22:29,930 Kladek isn't a friend to Kevin Crow. 306 00:22:30,430 --> 00:22:32,150 But she is a U .S. citizen. 307 00:22:32,570 --> 00:22:36,330 And for someone who has spent two decades of his life defending the United 308 00:22:36,330 --> 00:22:40,990 States, the betrayal back home cuts just as deep. 309 00:22:42,690 --> 00:22:46,990 You do come back, and you have a big handshake, and someone says thanks for 310 00:22:46,990 --> 00:22:49,110 service, and then they take your money. 311 00:22:49,410 --> 00:22:52,210 And it's amazing how that works in our country. 312 00:22:52,590 --> 00:22:58,970 If a threat is right there, wears a little dress, wears a big smile, and 313 00:22:58,970 --> 00:22:59,970 the threat. 314 00:23:01,320 --> 00:23:07,220 Next on American Greed, nearly 800 investors believe they're using their 315 00:23:07,220 --> 00:23:08,360 to buy silver. 316 00:23:08,840 --> 00:23:15,480 But in reality, Ronnie Gene Wilson's alchemy has turned metal into thin air. 317 00:23:15,780 --> 00:23:17,720 They were buying nothing. They were buying a fiction. 318 00:23:31,850 --> 00:23:33,550 In February 2012, 319 00:23:34,570 --> 00:23:39,330 Ronnie Gene Wilson sits in the offices of the South Carolina Securities 320 00:23:39,330 --> 00:23:40,330 Division. 321 00:23:40,510 --> 00:23:47,430 The 64 -year -old silver dealer has been called before investigators after a 322 00:23:47,430 --> 00:23:53,050 woman complains that Wilson has been doctoring the investment statements of 323 00:23:53,050 --> 00:23:54,770 92 -year -old father. 324 00:23:55,970 --> 00:23:59,230 The daughter sent us the documents. We reviewed these documents. 325 00:23:59,920 --> 00:24:03,300 And we found that there were some significant red flags that were popping 326 00:24:04,140 --> 00:24:09,880 South Carolina Attorney General Alan Wilson heads the State Securities 327 00:24:09,880 --> 00:24:13,200 and is no relation to Ron Wilson. 328 00:24:13,440 --> 00:24:17,240 In fact, he's a thorn in Ron Wilson's side. 329 00:24:17,800 --> 00:24:24,380 His Securities Division begins digging into Ron Wilson's business and finds... 330 00:24:24,650 --> 00:24:29,770 that Wilson has hundreds of investors with supposedly tens of millions of 331 00:24:29,770 --> 00:24:31,470 dollars invested in silver. 332 00:24:31,950 --> 00:24:37,470 The Securities Division calls Wilson into their offices to ask him where all 333 00:24:37,470 --> 00:24:38,650 this silver is. 334 00:24:39,670 --> 00:24:44,610 During the course of that interview, he basically tells us that he has between 335 00:24:44,610 --> 00:24:49,230 500 and 600 ,000 ounces of silver basically stored in the depository in 336 00:24:49,230 --> 00:24:50,230 Delaware. 337 00:24:50,840 --> 00:24:55,720 Ron Wilson's made a career of placating people's concerns with his word of 338 00:24:55,720 --> 00:24:56,720 honor. 339 00:24:57,080 --> 00:25:01,220 But this time, he may have pushed his conceit too far. 340 00:25:02,380 --> 00:25:06,380 I don't think he expected us to check. Because at this point, he's so good at 341 00:25:06,380 --> 00:25:09,520 getting people to believe him. He doesn't think that people are even 342 00:25:09,520 --> 00:25:11,560 the truth of what he's telling. 343 00:25:12,500 --> 00:25:15,800 They've served this area extremely effectively. 344 00:25:16,320 --> 00:25:17,380 County Councilman. 345 00:25:17,800 --> 00:25:19,880 South Carolina school board member. 346 00:25:20,640 --> 00:25:21,760 Silver dealer. 347 00:25:22,920 --> 00:25:27,120 Anderson County citizens know Ronnie Gene Wilson as many things. 348 00:25:28,600 --> 00:25:32,860 But more than anything, they know him as a straight shooter. 349 00:25:34,120 --> 00:25:40,120 The one thing I really thought about Ron was that he was a very true, honest 350 00:25:40,120 --> 00:25:42,120 person. He was very gruff. 351 00:25:42,890 --> 00:25:48,450 When he said things, it was just like, here I am, this is who I am, take me or 352 00:25:48,450 --> 00:25:51,570 leave me. And I respected that about him. 353 00:25:54,450 --> 00:26:01,090 Candy Kern Fuller is an attorney in Anderson County, South Carolina, who 354 00:26:01,090 --> 00:26:05,930 Ron Wilson from his time as an elected official on the Anderson County Council. 355 00:26:06,950 --> 00:26:10,330 At first glance, they may not seem likely allies. 356 00:26:10,870 --> 00:26:11,890 She's a liberal. 357 00:26:12,440 --> 00:26:14,220 He's an arch -conservative. 358 00:26:14,760 --> 00:26:20,640 He was a member of the John Birch Society, national commander of the Sons 359 00:26:20,640 --> 00:26:21,840 Confederate Veterans. 360 00:26:22,340 --> 00:26:24,760 Greetings and welcome you to Anderson. 361 00:26:25,340 --> 00:26:30,080 And different things of that nature. He was very, very politically conservative. 362 00:26:32,580 --> 00:26:36,980 But Kern Fuller is willing to put aside philosophical differences. 363 00:26:37,660 --> 00:26:42,520 to attend a 2009 seminar Wilson is giving for his precious metals company, 364 00:26:42,760 --> 00:26:44,880 Atlantic Bullion and Coin. 365 00:26:46,120 --> 00:26:51,800 She hears a pitch that Assistant U .S. Attorney Bill Watkins says is a 366 00:26:51,800 --> 00:26:52,800 of his business. 367 00:26:53,980 --> 00:26:58,680 Ron predicted essentially the end of the world. The dollar was going to crash. 368 00:26:58,760 --> 00:26:59,760 It would be worthless. 369 00:26:59,960 --> 00:27:04,140 And that hard money, silver and gold, was where people should put their money. 370 00:27:05,450 --> 00:27:08,910 Kern Fuller doesn't buy into the doom and gloom. 371 00:27:10,510 --> 00:27:12,630 But silver doesn't have politics. 372 00:27:14,030 --> 00:27:15,690 And the prices are rising. 373 00:27:16,930 --> 00:27:21,330 Kern Fuller agrees to invest $10 ,000 with Wilson. 374 00:27:22,070 --> 00:27:25,690 What appealed to me was what silver and gold were actually doing. 375 00:27:26,290 --> 00:27:30,450 I mean, I can pick up a newspaper. I can get on the Internet. And so at that 376 00:27:30,450 --> 00:27:33,110 time, I see it. I see it go up. 377 00:27:36,970 --> 00:27:42,470 Another person dazzled by Silver's rise is Bill Strewing. He's worked in law 378 00:27:42,470 --> 00:27:44,250 enforcement for more than 30 years. 379 00:27:44,970 --> 00:27:50,410 And in 1996, he starts working for the Anderson County government as chief of 380 00:27:50,410 --> 00:27:51,410 public safety. 381 00:27:51,470 --> 00:27:56,190 He passes through Councilman Ron Wilson's offices enough in his official 382 00:27:56,190 --> 00:28:02,010 that eventually his curiosity in Wilson's metals business is piqued. 383 00:28:02,630 --> 00:28:07,600 I mentioned one time to him, I said, I'm interested in the silver thing that you 384 00:28:07,600 --> 00:28:11,040 have. I said, I understand there's some people that have it I've talked to, and 385 00:28:11,040 --> 00:28:13,700 it's quite lucrative. And he said, oh, yeah. 386 00:28:13,920 --> 00:28:18,840 He said, I'll tell you what. He said, I'll have my secretary send you an 387 00:28:18,840 --> 00:28:20,300 invitation to one of our seminars. 388 00:28:22,460 --> 00:28:27,560 At the seminar, he sees a number of well -respected citizens of Anderson County 389 00:28:27,560 --> 00:28:30,780 who have money invested with Ron Wilson. 390 00:28:31,640 --> 00:28:37,980 So I thought, well, you know, if these lawyers, and doctors and notable people 391 00:28:37,980 --> 00:28:42,920 in the community are going for this. I'm going to get in. I'll get it also. 392 00:28:43,780 --> 00:28:50,440 In 2006, Strewing is ready to retire from his job with Anderson County and 393 00:28:50,440 --> 00:28:56,300 Wilson $10 ,000 that he receives from unused vacation and sick pay. 394 00:28:57,580 --> 00:29:03,440 Like approximately 800 other investors in Wilson's company, Strewing believes 395 00:29:03,440 --> 00:29:09,140 that Wilson is buying precious metals with his money and then trading them in 396 00:29:09,140 --> 00:29:10,140 the market. 397 00:29:11,540 --> 00:29:16,700 Quarterly, I got reports of he bought and sold, bought and sold. And, of 398 00:29:16,720 --> 00:29:19,840 he bought when the market was low, and then he sold when the market was high. 399 00:29:19,960 --> 00:29:23,900 And I never took any money out of it. I was going to leave it in there until it 400 00:29:23,900 --> 00:29:28,360 got to a sizable amount, and then that would have been for my eventually 401 00:29:28,360 --> 00:29:29,360 retirement. 402 00:29:30,350 --> 00:29:35,310 The only problem is that the statements Strewing and other investors are getting 403 00:29:35,310 --> 00:29:38,050 are complete fabrications. 404 00:29:39,170 --> 00:29:44,390 No, it was all fictitious. The only real numbers on the statement was the amount 405 00:29:44,390 --> 00:29:47,270 of money the investor put in. 406 00:29:47,690 --> 00:29:52,570 That number was correct. Then all the trade, that was false. 407 00:29:53,850 --> 00:29:55,050 There was no silver. 408 00:29:56,040 --> 00:30:00,400 This guy was a slick snake oil salesman, except there was never any snake oil. 409 00:30:00,460 --> 00:30:02,280 That's what makes it worse. There was nothing there. 410 00:30:03,320 --> 00:30:08,580 According to South Carolina Attorney General Alan Wilson, Ronnie Gene Wilson 411 00:30:08,580 --> 00:30:12,840 walks into a perfect scenario for running a precious metal scam. 412 00:30:13,800 --> 00:30:18,840 The best fraudulent schemes always have elements of truth to them that are 413 00:30:18,840 --> 00:30:19,840 verifiable. 414 00:30:19,980 --> 00:30:22,980 Silver was going up. The economy was going down. He leveraged that. 415 00:30:23,880 --> 00:30:29,440 It gives investors little reason to doubt Wilson's ability to show positive 416 00:30:29,440 --> 00:30:30,440 returns. 417 00:30:31,020 --> 00:30:32,900 I saw what the silver was bringing. 418 00:30:33,160 --> 00:30:35,080 I saw what the paper was saying. 419 00:30:35,420 --> 00:30:37,180 I got my quarterly reports. 420 00:30:37,460 --> 00:30:39,840 They didn't seem outlandish or anything like that. 421 00:30:40,540 --> 00:30:46,420 I see it go up, and I'm saying, wow, I bought this at $10 an ounce, and it's 422 00:30:46,420 --> 00:30:48,560 already now $15 an ounce. 423 00:30:48,980 --> 00:30:52,200 And then it went up to $20, and then it went up to $30. 424 00:30:52,890 --> 00:30:57,890 and then it went up to 40, just like he said it would. If he'd have taken our 425 00:30:57,890 --> 00:31:00,990 money, and he would have bought silver with it, and he would have been 426 00:31:00,990 --> 00:31:04,990 legitimate about it and everything like that, we would be well off right now, 427 00:31:05,070 --> 00:31:06,070 okay? 428 00:31:06,810 --> 00:31:09,790 Not well off enough for Ron Wilson's taste. 429 00:31:10,030 --> 00:31:11,250 He wants it all. 430 00:31:12,770 --> 00:31:18,390 When American Greed returns, Ron Wilson steals money by telling people the end 431 00:31:18,390 --> 00:31:19,590 of days is near. 432 00:31:20,370 --> 00:31:22,010 Is it just part of the image? 433 00:31:22,600 --> 00:31:25,080 Or has he managed to even convince himself? 434 00:31:25,760 --> 00:31:31,120 He had stacked to the ceiling canned goods, tents, firearms, ammunition, 435 00:31:31,260 --> 00:31:37,740 everything that one would expect to see if you were preparing for the government 436 00:31:37,740 --> 00:31:38,740 to collapse. 437 00:31:39,240 --> 00:31:44,920 Learn more about how Ron Wilson attracts investors into his scheme at 438 00:31:44,920 --> 00:31:47,700 AmericanGreed .CNBC .com. 439 00:31:48,680 --> 00:31:51,140 Want inside information from the show? 440 00:31:51,710 --> 00:31:53,470 Join the Greed Social Network. 441 00:31:53,910 --> 00:31:56,370 Like us on American Greed's Facebook page. 442 00:31:56,710 --> 00:31:57,710 We'll be right back. 443 00:32:07,730 --> 00:32:13,850 In Anderson County, South Carolina, Ronnie Gene Wilson tells investors that 444 00:32:13,850 --> 00:32:16,010 .S. currency is about to collapse. 445 00:32:18,250 --> 00:32:24,230 But in reality, it appears there's no bigger fan of the almighty dollar than 446 00:32:24,230 --> 00:32:25,230 Wilson. 447 00:32:26,550 --> 00:32:33,270 Between 2009 and 2012, he takes in more than $65 million from 448 00:32:33,270 --> 00:32:38,030 investors throughout the country intending to invest in precious metals. 449 00:32:39,510 --> 00:32:42,830 But Wilson never actually buys bullion. 450 00:32:44,390 --> 00:32:47,250 There was no silver, and he would take that money. 451 00:32:47,580 --> 00:32:51,240 and pay off older investors to keep them in the scheme, to keep them, you know, 452 00:32:51,240 --> 00:32:52,360 basically hooked in. 453 00:32:53,580 --> 00:32:57,720 And it was just layers and layers of fraud, each class of victim that came 454 00:33:00,020 --> 00:33:03,780 And the money that is left over goes mainly to himself. 455 00:33:04,660 --> 00:33:10,340 He spent freely, and oftentimes he just paid too much money. It wasn't his 456 00:33:10,340 --> 00:33:11,340 money. He didn't care. 457 00:33:12,110 --> 00:33:18,230 Beatty Ashmore is an area attorney who becomes the trustee of Wilson's Holdings 458 00:33:18,230 --> 00:33:19,450 on behalf of the victims. 459 00:33:19,890 --> 00:33:25,830 One of the more remarkable assets that Ashmore will liquidate is this farm 30 460 00:33:25,830 --> 00:33:27,230 miles from Greenville. 461 00:33:28,010 --> 00:33:30,270 The farm is a unique place. 462 00:33:30,510 --> 00:33:35,510 It is designed to be totally self -sustainable. 463 00:33:36,010 --> 00:33:38,350 The farm is completely organic. 464 00:33:39,320 --> 00:33:44,260 Wilson even sells the farm's meats, cheeses, and produce from his own 465 00:33:44,260 --> 00:33:45,260 store. 466 00:33:46,680 --> 00:33:52,060 It's a progressive attitude, but don't believe that the hardliner has gone 467 00:33:53,100 --> 00:33:57,580 Wilson may have other motivations for a self -sustainable refuge. 468 00:33:58,260 --> 00:34:02,260 When the day came when the government collapses, he wanted to be totally self 469 00:34:02,260 --> 00:34:07,320 -sufficient. He's got $400 ,000 worth of solar panels alone, so he could be off 470 00:34:07,320 --> 00:34:08,920 the... the power grid. 471 00:34:09,840 --> 00:34:14,520 There's more evidence of Wilson's doomsday preparations in his offices. 472 00:34:15,020 --> 00:34:21,800 In this room, he had stacked to the ceiling canned goods, tents, 473 00:34:21,800 --> 00:34:27,560 devices, a number of firearms, ammunition, gunpowder, shells. 474 00:34:28,060 --> 00:34:33,960 He had everything necessary to survive in the event that the government would 475 00:34:33,960 --> 00:34:34,960 collapse. 476 00:34:38,280 --> 00:34:43,620 Ned Chamblee isn't worried about the end of days so much as the end of his 477 00:34:43,620 --> 00:34:44,620 working years. 478 00:34:45,139 --> 00:34:46,739 That's a drill ship there. 479 00:34:47,520 --> 00:34:53,040 He's spent 40 years working on ships overseas, doing everything from 480 00:34:53,040 --> 00:34:57,139 equipment for oil rigs to shipping merchandise across the Atlantic. 481 00:34:57,600 --> 00:35:03,100 By the end of 2010, he's eyeing retirement and meets with Ron Wilson. 482 00:35:04,330 --> 00:35:08,370 Well, he was talking about how bad the economy is in the U .S. and what the 483 00:35:08,370 --> 00:35:13,070 dollar's fixing to crash and the only safe way of putting your money would be 484 00:35:13,070 --> 00:35:15,150 metals, in precious metals. 485 00:35:16,630 --> 00:35:21,950 And he said, it's not guaranteed, but in the past I have been doubling people's 486 00:35:21,950 --> 00:35:23,470 money over a two -year period. 487 00:35:26,270 --> 00:35:30,970 Chamblee says he calls the Better Business Bureau just to make sure and 488 00:35:30,970 --> 00:35:32,750 Wilson has a AA rating. 489 00:35:34,070 --> 00:35:40,970 Chamblee takes all of his money from his 401k, more than $500 ,000, and invests 490 00:35:40,970 --> 00:35:41,970 in silver. 491 00:35:43,170 --> 00:35:48,890 Into 2012, everything seems to be going just as Wilson said it would. 492 00:35:50,130 --> 00:35:53,730 According to the statements he was sending out, I'd already doubled my 493 00:35:54,330 --> 00:35:56,870 According to the paperwork, it was worth over a million. 494 00:36:00,050 --> 00:36:02,170 He's a roughneck -turned -millionaire. 495 00:36:03,640 --> 00:36:07,160 It's a welcome development, and at just the right time. 496 00:36:08,200 --> 00:36:12,100 Chamblee's company wants to send him back to work on a rig off the coast of 497 00:36:12,100 --> 00:36:13,100 Nigeria. 498 00:36:13,540 --> 00:36:16,720 But Chamblee doesn't want to go back overseas. 499 00:36:18,420 --> 00:36:20,520 At that time, I thought I had plenty of money. 500 00:36:20,740 --> 00:36:22,340 So I said, well, let's go ahead and retire. 501 00:36:22,820 --> 00:36:28,840 About two weeks after I retired, I found out that it had all upon its skin. 502 00:36:30,440 --> 00:36:32,440 When American Greed returns... 503 00:36:32,860 --> 00:36:36,100 Wilson investors want to cash in on the metals rush. 504 00:36:37,340 --> 00:36:43,000 But they come to discover that their plans for a lustrous future are just 505 00:36:43,000 --> 00:36:44,000 gold. 506 00:36:44,100 --> 00:36:49,960 Once we made a call on the money, he closed shop. And when that happened, I 507 00:36:49,960 --> 00:36:53,100 to myself, not there. 508 00:36:53,440 --> 00:36:55,000 Don't know if it's ever been there. 509 00:37:09,610 --> 00:37:16,210 By early 2011, Bill Strewing has upped his investment in silver to $50 ,000 510 00:37:16,210 --> 00:37:17,950 with Ronnie Gene Wilson. 511 00:37:18,850 --> 00:37:22,770 Periodically, I looked in the paper, and I knew what I had, how many, when I 512 00:37:22,770 --> 00:37:25,410 looked at the quarterly report and saw what it was and done a little figuring, 513 00:37:25,490 --> 00:37:27,230 and it figured out pretty darn good. 514 00:37:28,990 --> 00:37:32,830 Hundreds of Wilson's investors feel exactly the same way. 515 00:37:34,370 --> 00:37:37,110 It keeps the fraud rolling right along. 516 00:37:40,750 --> 00:37:45,530 This scheme went over 26 states, incorporated over 1 ,000 victims, and 517 00:37:45,530 --> 00:37:50,190 million in money was defrauded out of these victims. And in 15 years, not one 518 00:37:50,190 --> 00:37:53,070 single complaint was filed by any one of the thousands of people that were 519 00:37:53,070 --> 00:37:54,070 invested in this enterprise. 520 00:37:55,030 --> 00:37:56,030 He was good. 521 00:37:57,630 --> 00:38:04,490 But in the fall of 2011, this con man's 15 -year streak comes to an end when 522 00:38:04,490 --> 00:38:09,390 an investor suspects that Ron Wilson may be falsifying documents. 523 00:38:11,080 --> 00:38:17,700 Mr. Wilson, it appears, overreached a bit with his scheme and was changing 524 00:38:17,700 --> 00:38:24,440 statements to reflect that folks had not bought as much silver as earlier 525 00:38:24,440 --> 00:38:25,840 statements had shown. 526 00:38:27,480 --> 00:38:33,560 On February 1, 2012, Wilson is summoned to an interview with the South Carolina 527 00:38:33,560 --> 00:38:37,720 Securities Division in Columbia to explain the discrepancies. 528 00:38:38,060 --> 00:38:40,360 He blames them on a simple error. 529 00:38:40,880 --> 00:38:44,440 and the Securities Division lets him walk out a free man. 530 00:38:45,380 --> 00:38:50,740 But it appears that Wilson feels the walls are closing in around him. 531 00:38:51,840 --> 00:38:56,060 He knew that the end was near or suspected it could be near. 532 00:38:57,160 --> 00:39:02,300 The U .S. Secret Service not only protects the president, but investigates 533 00:39:02,300 --> 00:39:03,780 financial crimes as well. 534 00:39:05,420 --> 00:39:09,900 When the South Carolina Securities Division asked them to assist in the 535 00:39:09,900 --> 00:39:15,580 investigation, Special Agent Jason Durkin sees a desperate Ron Wilson put 536 00:39:15,580 --> 00:39:17,320 fraud into overdrive. 537 00:39:18,900 --> 00:39:24,520 He came and had a seminar presented to the class. Bring all your money. If you 538 00:39:24,520 --> 00:39:27,600 have a house paid off, take out another mortgage on that house. Take a second 539 00:39:27,600 --> 00:39:31,200 mortgage. If you have IRAs, dump all your IRAs in and bring all your money to 540 00:39:31,200 --> 00:39:32,200 invest. 541 00:39:33,100 --> 00:39:39,620 The Secret Service continues its investigation and calculates that if 542 00:39:39,620 --> 00:39:44,860 business is legit, he should have an extraordinary 8 million ounces of silver 543 00:39:44,860 --> 00:39:46,020 under his control. 544 00:39:47,200 --> 00:39:53,200 To figure that out in more something you can grasp, if you take 8 million 545 00:39:53,200 --> 00:39:57,800 ounces, that gives you 500 ,000 pounds. 546 00:39:58,080 --> 00:40:00,140 So if you want to equate that to tons... 547 00:40:02,090 --> 00:40:04,010 So that gives you 250 tons. 548 00:40:04,410 --> 00:40:11,350 That's 125 Ford Explorers. That's a large amount of silver to have under 549 00:40:11,350 --> 00:40:12,350 one control. 550 00:40:13,970 --> 00:40:20,350 Durgin has his doubts. He subpoenas Wilson's depository and finds that 551 00:40:20,350 --> 00:40:23,250 short by all 8 million ounces. 552 00:40:23,790 --> 00:40:26,830 The depository is empty. 553 00:40:29,040 --> 00:40:33,560 When the U .S. Attorney's Office confronts Wilson with the records, they 554 00:40:33,560 --> 00:40:36,100 remarkably submissive Ron Wilson. 555 00:40:38,600 --> 00:40:42,180 It's hard to bluff at that point when you've got no silver. 556 00:40:42,620 --> 00:40:43,620 It was over. 557 00:40:44,680 --> 00:40:50,340 On July 27, 2012, Wilson pleads guilty to mail fraud. 558 00:40:52,420 --> 00:40:57,680 Four months later, Ned Chamblee is in the courtroom for Wilson's sentencing. 559 00:40:59,450 --> 00:41:04,410 Chamblee has gone from a life of hard labor to a retiree worth a million 560 00:41:04,410 --> 00:41:08,370 dollars. But as he sits in court, it's all gone. 561 00:41:09,350 --> 00:41:13,990 He lets Ron Wilson know how he feels about it when he's allowed to say a few 562 00:41:13,990 --> 00:41:15,490 words before the judge. 563 00:41:17,010 --> 00:41:20,370 I told him that I didn't think he should serve a day in prison. I thought he 564 00:41:20,370 --> 00:41:21,370 should be executed. 565 00:41:22,970 --> 00:41:27,350 The judge sentences Wilson to 19 and a half years in prison. 566 00:41:27,759 --> 00:41:31,480 which the Secret Service says is more than Wilson was expecting. 567 00:41:32,700 --> 00:41:38,040 He felt that he was only going to get sentenced to eight years in jail, so he 568 00:41:38,040 --> 00:41:41,260 actually was already making plans of, well, when I get out, I want to buy this 569 00:41:41,260 --> 00:41:42,260 type of motorcycle. 570 00:41:42,360 --> 00:41:46,260 I'm going to travel here. I'm going to be a free spirit, which strikes me as 571 00:41:46,260 --> 00:41:47,260 interesting. 572 00:41:47,280 --> 00:41:51,620 Where is he going to get the funds to have such a great retirement? 573 00:41:53,140 --> 00:41:58,240 Even from jail, Ron Wilson may be putting one over on his investors. 574 00:41:58,840 --> 00:42:02,520 We are missing money. We're missing cash. We're missing millions of dollars 575 00:42:02,520 --> 00:42:05,840 worth of cash that are not on the books and records. Unless Ron Wilson or 576 00:42:05,840 --> 00:42:08,580 somebody else tells me where it is, we'll never know. 577 00:42:08,780 --> 00:42:12,440 I mean, you're dealing with crooks, and they're hiding money from you. 578 00:42:12,940 --> 00:42:16,740 And I am convinced that Ron Wilson is one of those people. 579 00:42:19,340 --> 00:42:23,800 And the federal government believes he may not be the only crook. 580 00:42:25,680 --> 00:42:29,540 Lankboy and Corwin was more beyond Ron Wilson himself. He actually had 581 00:42:29,540 --> 00:42:33,320 employees. He had a staff that he worked with, and there's still quite a few 582 00:42:33,320 --> 00:42:37,160 individuals, both within the company and outside the company, that are still 583 00:42:37,160 --> 00:42:38,340 actively being investigated. 584 00:42:39,560 --> 00:42:42,460 Special Agent Durkin wants it to be perfectly clear. 585 00:42:42,940 --> 00:42:47,960 Anyone that is involved in this fraud should expect a visit from the Secret 586 00:42:47,960 --> 00:42:48,960 Service.