Rep. Grayson loses $18 million in fraud scheme

Rep. Alan Grayson (D-Fla.) lost $18 million in an investment fraud scheme, according to court papers cited Monday by The Associated Press

About 120 investors lost a total of more than $35 million, the report says. 

William Dean Chapman of Virginia ran the scheme and was sentenced Friday to 12 years in prison.

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Court documents only showed Grayson’s initials, A.G., but there were a few instances in which his name was spelled out. The congressman confirmed to the AP on Monday that he was the person mentioned. 

In 2009, Grayson also fell victim to a fraud scheme in which a company called Derivium Capital committed a similar crime to Chapman’s. The congressman won $34 million after filing a lawsuit based on federal racketeering laws, the AP report notes. 

Grayson was first elected to Congress in 2008 and served one term before being defeated by Rep. Daniel Webster (R-Fla.) in 2010. He ran again last year, and was elected to the 113th Congress.

He’s considered one of the wealthiest members of Congress.