The Brad Sherman Scam

"I find this practice quite reprehensible." -- Craig Holman with Public Citizen, a clean government advocacy group
[Bloomberg, 2/13/2009]*
It's a guaranteed investment scam only available to a politician with the know-how — and the loose ethics — to pull it off.  And Brad Sherman has used it to pocket nearly half a million dollars over his career.  Read on to learn all about the Brad Sherman Scam.

-How it works-

  1. The Loan
    Brad Sherman loans his campaign money.
  2. The Sell
    Brad Sherman raises money from his special interest donors.
  3. The Scheme
    Brad Sherman has his campaign repay the principal — but lets the interest continue to accrue.
  4. The Score
    Brad Sherman later collects the interest — reaping huge profits on his own loan.

-The First Sherman Scam-

On December 29, 1989, Brad Sherman loaned his campaign $237,399.

Ten years later, his campaign had paid back the principal — but the interest had continued to accrue.

By 2000, the unpaid interest had grown to $111,148.97 — a 47 percent profit on Sherman's original investment.

-How Brad Sherman got rich-

Brad Sherman ran his scam at least 15 times in his California campaigns, including one campaign (for state controller) that he never actually ran.

He then did it 21 times in his Congressional campaigns, for a total of at least 36 profit-making, pocket-padding loans.

Over the course of sixteen years, Sherman continuously had his campaigns pay off the principal on these loans — but charged high interest rates that allowed him to reap huge profits on his original investment.

By 2005, Sherman's scam had netted him nearly half a million dollars in interest.

Get the word out:
Tired of being a pawn in Brad Sherman's scam?  You can take away his get-rich-quick scheme — by denying him your vote.  After all, Brad Sherman uses his seat in Congress — the seat you gave him — to run his scam.  And this November, you can put an end to it once and for all.

* Craig Holman was referencing the exact practice through which Brad Sherman exploited campaign finance loopholes to enrich himself to the tune of $461,000.