All About the $250,000 Hollywood Investment Scam Pulled Off By Serial Fraudster David Bloom

David Bloom's arrest in investment fraud

In a shocking turn of events, the notorious con artist known as the "Wall Street Whiz Kid," David Bloom, has been apprehended in Los Angeles and charged with a litany of crimes related to a fraudulent investment scheme. Bloom, who had previously faced convictions in New York for financial fraud schemes, is now under scrutiny for allegedly duping unsuspecting victims out of nearly $250,000 in Hollywood-related scams.

What is he being charged with?

The 59-year-old David Bloom was arrested by the Los Angeles Police Department on a Monday morning, and he is currently being held on a substantial bail of $505,000. The charges brought against him include nine counts each of grand theft and fraud involving securities, with "special allegations of two or more prior felony convictions," as stated by L.A. District Attorney George Gascón.

What's the scam?

Gascón, in a statement regarding the case, remarked, "David Bloom managed to convince hard-working people to turn over their earnings as part of a fraudulent investment scheme." He further encouraged potential victims of this case or other financial scams to report their experiences to the authorities. Gascón emphasized that those who prey upon unsuspecting individuals for personal gain will be held accountable for their actions.

The arraignment for David Bloom is scheduled for August 29, a date that will mark a pivotal moment in his legal journey as he faces the consequences of his alleged misdeeds.

Who is David Bloom?

Bloom's notoriety had already gained attention in the media before his recent arrest. Last year, it was reported that Alex Baskin and Aliza Rosen's AYR Media were developing a docuseries and podcast titled "King Con: The Whiz Kid," which would delve into the depths of Bloom's decades-long deceit. The project aimed to shed light on previously unknown scams and victims, as well as the high-profile ruses that had previously landed Bloom behind bars.

According to the Los Angeles Times, Bloom's modus operandi involved targeting potential victims at various locations, including a luxury apartment complex and bars like the Frolic Room on Hollywood Boulevard. He would purportedly present himself as having exclusive access to yet-to-be-public stocks and offer unsuspecting individuals the chance to invest in potentially lucrative opportunities. Tragically, despite paying thousands of dollars, victims claimed that they never saw any returns on their investments.

A repeat offender

David Bloom's criminal history dates back to the late 1980s when he pleaded guilty to mail and securities fraud in New York. At that time, he was sentenced to eight years in federal prison for convincing individuals to entrust him with financial investments exceeding $15 million. Instead of using the funds as intended, he diverted the money for personal use, leaving his victims in financial ruin. He faced further legal troubles in the late 1990s when he duped ten people out of at least $50,000 in a scheme that targeted various restaurant employees.

The Los Angeles Times revealed that Bloom's recent exploits in Los Angeles were shockingly similar to his past criminal activities. He allegedly convinced patrons at the Frolic Room that he could secure tickets for the Super Bowl at SoFi Stadium. Another victim claimed that Bloom had misrepresented his connection to Netflix CEO Ted Sarandos, leading to false promises of passing along a screenplay to the bar patron. In another incident, a woman reported that Bloom had approached individuals in a high-end apartment complex in the Franklin Village area, enticing them with opportunities to purchase shares of stock that were not yet available to the public. However, after collecting their investments, he vanished without a trace.

Although some of Bloom's victims did eventually receive partial refunds, investigators suspect that these funds were simply repaid using money extorted from other unsuspecting victims. It's worth noting that Bloom was initially arrested in August 2022 year but was not immediately charged, resulting in his release from custody.

What's next for David Bloom?

David Bloom's audacious and recurrent financial fraud schemes have not only left a trail of financial devastation but also serve as a stark reminder of the need for vigilance and due diligence when approached with investment opportunities. The upcoming legal proceedings will determine the fate of this notorious "Wall Street Whiz Kid" and whether he will finally be held accountable for his actions.