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Feds: Author Duped Women Into Giving Him Millions

Money

GREG BLUESTEIN   10/ 7/11 05:44 AM ET   AP

ATLANTA — An author of legal thrillers and a fantasy trilogy was accused Thursday of bilking women out of millions of dollars after meeting them through an online Jewish dating service.

Mitchell Gross, whose books include the suspense story "Circle of Lies," duped at least two women into investing about $4.4 million in a sham company he set up, using some of the money to buy expensive artwork, a luxury car and a golf club membership, federal prosecutors said.

The wire fraud and money laundering charges he faces could carry a prison sentence of decades behind bars, according to authorities.

Gross, a 61-year-old author who writes under the pen names Mitchell Graham and Douglas Alan, pleaded not guilty. He has turned out at least a half dozen books, but told a judge he only had limited funds.

At a brief court appearance Thursday, Gross said he couldn't afford an attorney because he only had $2,000 in cash and no money in any other accounts. His court-appointed attorney Judy Fleming declined to comment on the case.

Authorities said Gross began a romantic relationship with a woman identified in court documents as "R.J." They met on a site around June 2006 and told her he made a lot of money by investing with a broker named "Michael Johnson" who was employed by "The Merrill Company," the records show.

"R.J." called the broker to talk over the investments, but it was actually Gross speaking in a disguised voice on the other line, prosecutors said. "R.J." wired close to $3 million to an account she believed belong to the company but actually did not exist, prosecutors said. Gross concealed the scheme by sending her phony tax forms and account statements, they added.

Then investigators said they discovered he was using the woman's funds to repay an ex-girlfriend, identified as "J.S." She was duped into investing $1.4 million with the phony firm, prosecutors said.

Federal prosecutors didn't identify the names of the victims in the indictment, but some details of the allegations have emerged in civil court documents.

Robbie Johnson of Florida filed a lawsuit against Gross in March 2008 claiming she met him on a Jewish Internet dating site. Soon, she said, he was falsely telling her that famed director Steven Spielberg had optioned his books for films that would feature Pierce Brosnan and Kirsten Dunst. He also told her he fell in love with her, and that he was eager to move to Florida to live with her, the lawsuit said.

They took vacations together to Japan, Panama and Brazil, and Johnson hosted a "Meet Mitch" party to introduce him to her friends. She even turned her son's bedroom into an office so he could move in, the complaint said.

But after he got the money – about $2.95 million – he started making excuses to avoid spending time with her, and delayed moving in together, the lawsuit said. The relationship ended in March 2008, when she discovered the account she was pumping money into was set up under Gross' name.

The court issued a settlement order in June 2008 that ordered Gross to pay Johnson more than $3.2 million – a sum that is now about $4 million with interest, said her lawyers, who applauded the criminal investigation.

"I'm not surprised to see the federal charges," said the woman's attorney, Clay O'Daniel. "I figured it was a matter of time."

Her other counsel, Richard Garbarini, said his client is "ecstatic that justice is being done."

Prosecutors, meanwhile, said anyone else who believes they were victimized should contact authorities. U.S. Attorney Sally Quillian Yates warned that the Internet makes it simpler "for those bent on defrauding others to find their next victim."

Gross, who lives in metro Atlanta, has written six books under the Mitchell Graham pen name, including a three-part science fiction series and a legal thriller called "Dead Docket." Court records also say he wrote another book, the suspense thriller "Circle of Lies," under the pen name Douglas Alan.

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05:47 PM on 10/08/2011
I think its stupid and desperate for women to give money to a man they dont even know from a dating site . Dating sites are the worse maybe they learned their lesson.
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cribbisque
08:03 AM on 10/08/2011
Why would you give anyone money at all, let alone someone that these women could not have known any longer than they apparently did?
rlpl02
Motivational Bull****er
07:07 AM on 10/08/2011
These women with access to such large amounts of cash being so easily duped... I bet I could pass myself off as a man and get a new car. If they're that stupid they'll never notice that my manly parts are made of plastic.
09:44 PM on 10/07/2011
Cougars beware........
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sakismomiam
06:48 PM on 10/07/2011
Women who are dumb enough to give their money away to strangers, DESERVES WHAT THEY GET. I have no sympathy for them at all.

A fool and her money are soon parted. Too funny!
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Brian Workman
05:26 PM on 10/07/2011
WAIT!!!!! I've got some swamp land in the deep south, that Dissey World wants to purchase! You want to buy in, before they purchase the land?!?!?!? HA!HA!HA!HA!HA!HA!HA!HA!HA!HA!HA!HA!
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Ossit
Ossit
03:47 PM on 10/07/2011
Why to people invest? Because they want money that's why! They're not giving it to the Poor, they're not doing it for any charities, they're doing it for themselves. Bilked or not, when people invest a lot of money it's out of sheer self-interest and everyone gets bilked one way or another. Let's all now blame each other. Guess I'll have to start blaming people who got bilked out of .20 cents at the grocery store because the evil dishonest store 'fixed' the scanner. Gee, can I start blaming all the people who waste thousands of dollars a year getting 'cleaned' out by every little store that has scratch off tickets and Lotto tickets that you all hope to be greedily rich off and never win? Oh gee when is someone going to complain they've been bilked out of all that money they could've saved? It's really easy to start chastising these women for what happened to them when there are people who lose money on Wall Street, lose their hard earned money because they want to gamble it away thinking they just may be the one to win 100 million and blow all that cash. In short, when everyone is so darn perfect then I guess they can complain about what happened to these women.
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Ossit
Ossit
03:38 PM on 10/07/2011
Yeah, I'll admit it wasn't exactly a light bulb moment these women giving all this money but let's stop right there! They believed what they were doing was going to make a pay off, NOT unlike people who invest in the Stock Market who want some investment back for what many might call stupid to hand over. Secondly, let's stop acting like that because the bilked were women, that that should taint all of us. Many old people, men and women get bilked and many blame them, NOT the people who bilk them in the first place until after they hear about it.

To ArtistWorldEnt, who seems to like to brag about making movies(like we should believe what they say about their profession) who says he's not "getting online to seek it", then why boast about how much you need? Are you trying to impress people with what you supposedly do? Why don't YOU keep your investment needs to yourself, and the rest of the world can stop knocking these women who if it sounds really good, if it'd be in their interest would.
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Lovekaley2006
i live in vegas so i stay in vegas
02:00 PM on 10/07/2011
hahhahahah SUCKERS!
01:54 PM on 10/07/2011
Oh My God! this is got to be a bad nightmare with out a doubt, let me tell you something, even in making movies as I do, when you need an investor that is going to invest millions, lets say that I had intentions of making an acadamy award Motion Picture ok?, there is a lot of study to go on before any money is received from any Investors to start my production.

You can't just get on the Internet and expect money to start falling out of the tree's, what in the hell was these women thinking?. I need a hundred million myself right now for a production in late 2012 that I am currently working on, but I am not getting online to seek it, lol.. these women clearly need a good shrink, and an honest husband that will help them find a good source of Investment Companies, to invest their money with!.
03:19 PM on 10/07/2011
I am very interested in investing around 5 m,in a very interesting venture. I would very much like to talk to you about the investment .
03:36 PM on 10/07/2011
Please email me first at this address: ARTISTWORLDMEDIA@AOL.COM , or showbizoffice@aol.com. If you will send me your phone number, I will be happy to discuss it with you. Thanks Lee
04:01 PM on 10/07/2011
I am not sure if you can write personal emails from here back to you or not, but if you need to, you can email me from Play it City2.com also for us to get in touch with each other.. Thanks Lee
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joe477
There can be only one...
05:30 PM on 10/07/2011
how much of a return can i expect on a $10 investment?
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artist5153
01:39 PM on 10/07/2011
I'm always intrigued by the mindset--do these people think they won't get caught? Like Bernie Madoff--did he even consider the ramifications of his fraud, even think once, "I'm gonna go down for this, big time?" Is it selective stupidity (you have to have SOME brains to figure out these schemes) that causes people to think they can do whatever and it will never catch up to them? Or do they think the short term benefit of living as rich for a short time is worth the prison time? Just intrigues me...
10:04 AM on 10/08/2011
I couldn't have said it better myself. I like your way of thinking.
claraluz
Per aspera ad astra!
12:41 PM on 10/07/2011
Sorry ladies, but any woman dumb enough to give millions of dollar to a man she met on the internet and probably did not even bother to do a search on him, deserves what she gets.
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pam0528
Married 17 years to my one and only.
01:08 PM on 10/07/2011
F&F claraluz, I'm a woman and I totally agree with you. You defintely do a background check on people you meet on the internet, goodness. They deserve what they got, period.
claraluz
Per aspera ad astra!
01:36 PM on 10/07/2011
Thanks, Pam And, as for any woman who would be willing to fork over millions of dollars to a guy on the internet... you have to wonder, don't you think?? I'd think twice about giving him ten dollars!!!
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11:13 PM on 10/07/2011
HE deserves to get what he gets for breaking their bank accounts and their hearts. I hope he rots in prison.
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sue1mar3
06:05 PM on 10/07/2011
It was a stupid mistake but then we have all made stupid mistakes, haven't we? They don't deserve to lose millions of dollars because the man they loved was a con-man.
claraluz
Per aspera ad astra!
01:07 AM on 10/08/2011
Yes, we all have made stupid mistakes, but not involving millions of dollars!! Would YOU have given that much money to a man just because he was sweet-talking you??
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susandiane
Despite everything, I am still a proud Virginian
12:33 PM on 10/07/2011
This is BETTER than a book! Stay tuned for the next action packed episode!
12:26 PM on 10/07/2011
put him in a room with the women, and let them settle it!!!
claraluz
Per aspera ad astra!
12:42 PM on 10/07/2011
These women would probably give him more money to pay his lawyer, hoping to get him as a prize if he can get away with it.
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Edward Wilkes
Poet/Stage Actor
12:24 PM on 10/07/2011
Now he gets to pen his next big book of the century in the Penitentiary!