Diary of a Victim of the Crandall Scam

Dorothy O. Wright has spent the last five years jotting the ups and downs of her stormy relationship with Crandall Financial Corp. in a series of private date books.

To assist in the government’s investigation of Crandall, Wright transcribed several pages of those notes. The excerpts from those pages begin with an undated entry about a TV appearance by one of Crandall’s owners:

Had heard Ron Smith extoll the excellence of an investment in hard assets such as diamonds on Financial Station.

The excerpts continue:

February 17th, 1983 had an 11 o’clock appt. at Crandall Corp. in L.A. Arco building on Flower St. Talked with broker by name of Jef Judin. He gave me a printout showing how fast my money would increase.

2-18-83 Jef sent a courier to our home to pick up a check for $10,000. (I cashed in a Time Certificate, of $10,580.65.)

2-21-83 Jef called, expect a call from Ron Smith, who encouraged me further about the value of investing in diamonds, a hard asset. Also told me that they required $35,000 to open an account, but they could wait until I could acquire that amount. . . . I sold Ginnie Mae.

On 3-31-83, Jef sent a courier for my $20,000 check. My understanding was that $20,000 would go into a Money Market acct., at 14.5%.

5-13-83 Fred Terr called suggesting I invest more at 12.5%!! Why not 14.5%?

8-2-83 $5,000 to Crandall via courier.

8-8-83 Ray Girard called. Wanted to be sure I knew that interest rates were going up and bonds down, sell (other investments) and invest more (in Crandall).

8-16-83 $15,000 to Crandall via courier.

8-24-83 Fred called. . . . $40,000 and Dad’s 3-carat diamond ring to Crandall.

9-27-83 Ray called to plan luncheon the next day. Fred, wine and flowers and card.

MORTGAGE HOME ON 9-30-83!

10-6-83 I called asking for statement. Invited me to luncheon on 10-10. Fred and Ray. No statement verbal or written.

11-2-83 Luncheon at Francois again. Buttering me up to take a second mortgage on home.

2-13-84 Called Ray, not available. I had come to my senses by this time. Canceled the second trust mortgage.

2-21-84 Ray not available.

4-13-84 Went to Costa Mesa/Fred. Angry, no info.

10-12-84 Black Day.

11-5-84 Info from bunco squad--Crandall closed by Security and Exchange Commission.