Tennessee financial adviser sentenced to 10 years in 1st TARP bank bailout fraud case

Tenn. man sentenced in bank bailout fraud case

NASHVILLE, Tenn. — The first person to be charged with fraud under the federal bank bailout has been sentenced to 10 years in prison.

Tennessee financial adviser Gordon B. Grigg was sentenced Thursday after pleading guilty in April to charges of mail fraud and wire fraud for bilking $6.1 million from investors.

Prosecutors say Grigg falsely told investors that his firm, ProTrust Management, could put their money in government-guaranteed debt under the $700 billion Troubled Asset Relief Program, or TARP.

Investigators say there is no such program under TARP. The criminal charges were the first filed through TARP’s inspector general’s office.

Grigg apologized to his victims, admitting to stealing their money and taking advantage of their emotions. The 46-year-old is expected to report to prison in 30 days.