Ep 11. Operation Crook, Line And Stinker

In American Greed season 12 episode 11, titled "Operation Crook, Line And Stinker," viewers get a closer look at an intricate fraud scheme that involves millions of dollars and a web of deceit that affects numerous victims. The episode traces the story of a man named Craig Berkman, a former Oregon gubernatorial candidate and investment manager. Berkman was a master con artist who used his charm and influential connections to swindle investors, charities, and even his own business partners.

Berkman's scheme was simple: he promised huge returns to investors who put money into his hedge fund, the Viking Fund. He claimed that the fund was invested in lucrative pre-IPO Facebook shares. However, in reality, Berkman used the money to pay back previous investors, finance his lavish lifestyle, and fund a failed political campaign. As the scheme grew, Berkman began to fake account balances, forge signatures, and create fraudulent account statements to hide the losses from his investors.

In "Operation Crook, Line And Stinker," viewers are taken through the many ways Berkman gained the trust of his victims. He created fake Facebook pages to make it seem as if he was well-connected with executives at the social networking giant. He made false claims of his business acumen, including allocating profits to charity. He became a trusted member of elite business circles, using his reputation and insider knowledge to perpetuate his frauds.

The episode highlights how the entire scam unraveled. First, a suspicious investor conducted his own investigation, discovering that the Viking Fund was not registered with the SEC. He reported Berkman to authorities, prompting an FBI investigation that uncovered the full extent of Berkman's criminality. As investigators dug deeper, they found that Berkman had also used some of the money to pay off a previous fraud conviction, adding a new layer of criminality to an already sordid tale.

"Operation Crook, Line And Stinker" also details the negative impact that Berkman's scam had on his victims. Charities that trusted Berkman to invest their funds lost large amounts of money, preventing them from delivering crucial services to those in need. Small investors lost their life savings to Berkman's fraudulent promises. Through interviews with these victims, the episode highlights the human toll of white-collar crime and the challenges that victims face in recovering their losses.

Ultimately, the episode shows how a complex web of secrets and lies can be uncovered through diligent investigation and the deployment of technology. Even as Berkman tried to hide his tracks, forensic accountants, computer experts, and other investigators were able to piece together the evidence that resulted in his arrest and conviction. It is a story of caution, reminding viewers that even those who appear to be the most trustworthy can turn out to be fraudsters with devastating consequences.