Gina Champion-Cain is in the News Again

Gina Champion-Cain is in the News Again – by Carl Vonderau.

You remember her, don’t you? Gina Champion-Cain was convicted of a massive fraud in San Diego that stole from 300 investors—many of them longtime friends. Before she was arrested she was on the cover of magazines, served on influential boards, and involved in all kinds of businesses. When I was a banker, I would have loved to have her as a client. But it all came crashing down when it turned out she was running a giant Ponzi scheme. She cultivated investors to fund high-interest loans to to cash-strapped restaurants and bar owners. But the loans were never made and the funds were used to prop up Champion-Cain’s own failing businesses. Her investors lost an estimated $183 million, and she was sentenced to 15 years in prison.

She is now pushing for early release, claiming she was sexually abused at a prison in Dublin, California. She says it was so bad that she suffered severe weight loss as well as anxiety and depression. Her husband of 32 years could not handle it and filed for divorce.

Can we pity a con artist enough to believe her about this? My first reaction was no. However, it’s not that simple. Other sources confirmed there was rampant sexual abuse at the prison. Several staff members, including the former warden, were convicted. The prison was nicknamed “the rape club” and closed a few months ago. To my knowledge, none of the inmates have been compensated for their mistreatment. So there is some degree of truth to what Champion-Cain is claiming.

The other interesting factor is that much of the money she stole has been recouped. This was due to a settlement with the title company involved in the scam, as well as the sale of Champion-Cain’s assets. Prosecutors attest that she fully cooperated with the receiver and the court to help recover the money. Shouldn’t that reduce her sentence?

Champion-Cain is due to be released from prison in 2033. She has made a petition that her sentence be commuted to compassionate release, which was denied. Then she argued for a writ of habeas corpus claiming that, in violation of the Eighth Amendment, she was subjected to cruel and unusual punishment. She also asked to serve her sentence in home confinement because she feared retaliation from the inmates and staff. She noted that others have been released due to the prison’s brutal treatment of them, and she should be too.

Do you think she has served enough time, or is this just another con job?

 

 

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