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Thursday, May 30, 2019

JASON BESCOE HEADING TO GREY BAR HOTEL: Flint Area Fraudster Sentenced May 29; “45 to 240 Months” In Michigan Department of Corrections, Along With $2.4 Million In Restitution For Small-Town Swindler

After multiple delays, Jason Bescoe, shown at left, was finally sentenced yesterday in Genesee County's 7th Circuit Court to 45 to 240 months in prison after admitting to stealing nearly $3 million from several elderly couples in the Flint, Michigan area.

Bescoe pleaded guilty in October 2018 to two counts of embezzlement and agreed to relinquish $2.4 million dollars in assets as part of a plea deal.

Bescoe admitted to swindling $2.7 million from clients between 2008 and 2017. 

Genesee County Circuit Court records confirm that Bescoe agreed to pay restitution to three victims—$1,222,575.30, $908,222.10 and $353,887.09 —from the assets relinquished. 

One couple, who are 90-and-86-years-old were taken for $1.7 million, according to Genesee County Sheriff Robert Pickell. 

The other, who are 89-and-82-years-old were taken for $925,000. 

Pickell stated during an October 2018 press conference that Bescoe invested their money via an online trading platform called optionsXpress, which specializes in the highly-speculative trading of options; and between 2008 and 2014, he transferred money from optionsXpress (acquired in 2011 by the investment firm Charles Schwab Corporation) to Merrill Lynch and then to JEA Capital Management, a business Bescoe owned. 

Bescoe actually formed three JEA Capital-related business entities: 2008 entities formed in Florida under the name “JEA Capital Management, LLC”, and one in Delaware under the same name. 

Another, “JEA Capital Holdings LLC”, was formed here in Michigan by Bescoe in 2012—Bescoe was funneling investor money to himself. 

Bescoe was previously charged with embezzlement of $100,000 or more back in August 2017 when a client of his approved a money transfer. 

Bescoe allegedly took $300,000 and kept it for himself. Bescoe used the money to pay for his house. 

In the case announced in October 2018, Bescoe was accused of transferring the money out of the original accounts to pay off his personal credit card and other credit card in the name of his wife. 

“Bescoe used the money for airline flights, high end hotels, fancy restaurants,” Pickell said during the October press conference. 

“In November of 2016 Bescoe bought the Atlas Valley Country Club and he wrote checks totaling $250,000 in four equal payments to the four owners at that time.” 

However, country club's former owners (the Henrickson family—Mark Henrickson, Laurie Welsh, Steve Henrickson, and Randi Rota, who had owned the historic course for 64 years) are seeking to reclaim it.

On March 28, 2019, the Atlas Township Board approved a request from the former owners, clearing the way for them to submit an application to the Liquor Control Commission in hopes of reclaiming the club. Although the club is currently owned by Jason Bescoe, his liquor license never went through. 

The former owners, represented by attorney Chris Stritmatter, are waiting for the property to go through the foreclosure process and intend to revert it back to their family, pay the back taxes and perhaps in the long run sell it to someone other than Bescoe—but in the meantime, they want it restored to its former reputation and status. 

Bescoe is expected to spend the next week in the Genesee County Jail, before being transferred to the custody of the Michigan Department of Corrections. Bescoe has also been ordered to disclose the location of $2.4 million in assets forfeited to repay his victims.

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