The Curious Case of Frederick L. Sharp: Crime Imitating Art
In the latest episode of “The Ponzi Playbook,” we step away from the classic Ponzi narratives to delve into the intriguing life of Frederick L. Sharp, a tale that blurs the lines between fiction and reality.
Frederick L. Sharp, author of “FOOTLOOSE,” a satirical novel about offshore money and global politics, unknowingly (or knowingly) set the stage for his own life. His book, a blend of sharp wit and insight into the art of “tax avoision,” appealed to the ultra-wealthy and those harboring deep mistrust of governments. Little did his readers know, Sharp’s life would soon mirror the complex world he wrote about.
SEC’s Allegations
In August 2021, a dramatic turn of events unfolded when the Securities & Exchange Commission (SEC) filed a civil lawsuit against Sharp and eight others. The allegations were severe: Sharp was accused of orchestrating a sophisticated, multi-national attack on the U.S. financial markets, defrauding investors through a scheme to sell hundreds of millions of dollars of U.S. stocks.
Sharp’s modus operandi, as alleged, was straight out of a high-stakes financial thriller. For a fee, he would help conceal the ownership of stock in public companies, using offshore shell companies and other individuals’ identities. This concealment involved breaking up ownership into blocks of less than 5%, a strategy to skirt public disclosure requirements.
The plot thickens with the classic “pump and dump” strategy. Misleading information was spread to inflate stock prices, which were then sold at peak value, reaping enormous profits. Sharp, the mastermind, facilitated the transfer of these proceeds through an intricate web of international finance directly into the control person’s bank account.
The DOJ Steps In
But the SEC was not the only entity on Sharp’s trail. The Department of Justice (DOJ) also indicted Sharp and his co-conspirators. They accused him of using an accounting system based in Switzerland, cryptically named “Q” (another nod to James Bond), and providing “xphones” to clients to conceal their identities.
Sharp’s Life Versus Fiction
Fred Sharp, once a writer of fiction, found himself living a story that was stranger than fiction. As he wrote under the codename “BOND” to a client, his services included keeping clients out of jail—a promise that would soon be tested. With over $1 billion in stock sales at stake, the unfolding drama of Frederick L. Sharp’s life challenges the boundaries between the written word and the real world, leaving us to wonder: Where does one end and the other begin?