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Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 00:00:01,130 --> 00:00:07,090 In this episode of American Greed, making movies and making money. 2 00:00:07,350 --> 00:00:10,630 It was good money, and I didn't think it was ever going to end. 3 00:00:10,870 --> 00:00:17,209 Mac Parker lives and works in Vermont, but his money -making mojo is straight 4 00:00:17,210 --> 00:00:18,260 out of Hollywood. 5 00:00:18,350 --> 00:00:21,890 I would sometimes raise as much as $150 ,000 a week. 6 00:00:22,790 --> 00:00:28,639 There's just one problem. If his movie costs less than $1 million to make, Why 7 00:00:28,640 --> 00:00:30,660 is Parker raising $28 million? 8 00:00:31,000 --> 00:00:35,999 It was discovered that less than a nickel of every dollar that was being 9 00:00:36,000 --> 00:00:39,420 invested was actually spent towards the creation of the movie. 10 00:00:40,120 --> 00:00:45,599 I put everything I had, every penny I had into the film, which really put me 11 00:00:45,600 --> 00:00:46,599 a real jam. 12 00:00:46,600 --> 00:00:48,000 So where's the cash going? 13 00:00:48,320 --> 00:00:51,080 And what's the secret that will enrage investors? 14 00:00:51,840 --> 00:00:54,430 I wanted to strangle him because he didn't tell her. 15 00:01:12,840 --> 00:01:19,459 In Vermont, in the fall of 2013, a 16 00:01:19,460 --> 00:01:25,699 56 -year -old man named Mac Parker enjoys his last few days of freedom 17 00:01:25,700 --> 00:01:27,180 reporting to federal prison. 18 00:01:28,160 --> 00:01:33,379 Though he prefers flannel shirts to French cuffs, this white -collar 19 00:01:33,380 --> 00:01:38,560 orchestrated a $28 million fraud, betraying friends and neighbors. 20 00:01:39,400 --> 00:01:45,100 Part of the pain for me and for so many of the people who trusted me in this, 21 00:01:45,240 --> 00:01:49,600 there was just a sense of how could you do this? 22 00:01:49,840 --> 00:01:55,680 You know, we know you. You know, we thought we knew you. 23 00:02:01,040 --> 00:02:03,120 Hi, my name is Mac. 24 00:02:03,640 --> 00:02:05,940 Welcome to Elgin Spring Farm. 25 00:02:06,680 --> 00:02:08,820 Have you ever been in a dairy barn before? 26 00:02:09,300 --> 00:02:13,839 He made children's videos about going to the farm and farm stories, and they 27 00:02:13,840 --> 00:02:16,310 were sort of semi -educational but also amusing. 28 00:02:22,060 --> 00:02:28,059 Mack was a storyteller, which in a small rural state like Vermont really makes 29 00:02:28,060 --> 00:02:30,470 him almost like a Garrison Keillor type figure. 30 00:02:31,050 --> 00:02:35,529 He would perform at venues large and small. We have a first night event in 31 00:02:35,530 --> 00:02:39,229 Burlington on New Year's Eve every year, and he would perform in front of big 32 00:02:39,230 --> 00:02:40,280 crowds. 33 00:02:42,230 --> 00:02:48,390 Pigs, pigs, I love them swine. I never met a pig who weren't a friend of mine. 34 00:02:55,690 --> 00:02:58,010 Well, I've known Mac for about 25 years. 35 00:02:58,540 --> 00:03:01,610 And probably from the beginning of his storytelling career. 36 00:03:02,440 --> 00:03:07,599 Clark Hinsdale is the president of the Vermont Farm Bureau and has hired Mac 37 00:03:07,600 --> 00:03:10,380 Parker to perform at conventions and banquets. 38 00:03:11,580 --> 00:03:16,459 Often you can see tears in the audience because he can tell a farmer's story 39 00:03:16,460 --> 00:03:18,260 better than you can tell it yourself. 40 00:03:18,800 --> 00:03:20,600 I hope you enjoyed the stories. 41 00:03:21,240 --> 00:03:23,620 Storytelling was my way. 42 00:03:24,160 --> 00:03:30,419 of both being a part of and giving back to this community and culture that I 43 00:03:30,420 --> 00:03:31,470 loved. 44 00:03:34,520 --> 00:03:35,900 But by 1999, 45 00:03:36,720 --> 00:03:38,660 Mac Parker is ready for a change. 46 00:03:39,100 --> 00:03:43,380 He plans to make a movie he calls The Birth of Innocence. 47 00:03:44,040 --> 00:03:46,320 I'd ask Mac, I would be curious. 48 00:03:46,740 --> 00:03:49,390 I'd say, where'd you get the idea for this, you know? 49 00:03:50,030 --> 00:03:54,889 And his response was, oh, something just took me by the collar and I just had to 50 00:03:54,890 --> 00:03:55,940 do it. 51 00:03:57,890 --> 00:04:02,170 Horace Williams will later work on the film as an editor and composer. 52 00:04:03,850 --> 00:04:06,530 This was so different from his other body of work. 53 00:04:06,750 --> 00:04:11,149 This was completely new territory for Mac, which I admired because, you know, 54 00:04:11,150 --> 00:04:14,090 here's a guy, he's got this thing down, he's got a brand. 55 00:04:14,470 --> 00:04:16,640 He's the Mark Twain of the state of Vermont. 56 00:04:17,160 --> 00:04:20,360 And he also said he was discarding it. 57 00:04:20,820 --> 00:04:24,639 He was throwing it away. He was moving in a different place in his life. And 58 00:04:24,640 --> 00:04:28,239 this movie was his move into a completely different creative territory. 59 00:04:28,240 --> 00:04:29,300 And I admired that. 60 00:04:30,880 --> 00:04:36,299 As he gathers his thoughts for the film, Parker writes, The Birth of Innocence 61 00:04:36,300 --> 00:04:39,500 is a film about the deeper truth of who we are. 62 00:04:39,940 --> 00:04:45,119 It is a simple reminder that each and every one of us has an unlimited power 63 00:04:45,120 --> 00:04:46,170 creative potential. 64 00:04:51,050 --> 00:04:56,550 And in the year 1999, Mac Parker begins to meet with potential investors. 65 00:04:58,170 --> 00:05:02,029 So I started talking to these people. What was my community? My community was 66 00:05:02,030 --> 00:05:06,109 farmers. You know, I grew up around farmers. I'd been telling farm stories 67 00:05:06,110 --> 00:05:07,129 15 years. 68 00:05:07,130 --> 00:05:10,130 These were the people that I knew. I loved these people. 69 00:05:11,110 --> 00:05:14,670 There was no sort of prospectus offered to people, nor did they ask. 70 00:05:14,671 --> 00:05:19,459 But his credibility with people was so strong that people would sort of say, 71 00:05:19,460 --> 00:05:20,780 yeah, I give this guy a shot. 72 00:05:20,820 --> 00:05:23,120 You know, he's such a genuine, honest person. 73 00:05:23,340 --> 00:05:25,800 I know my money's, you know, safe with him. 74 00:05:33,060 --> 00:05:37,500 Armand Bryson is a dairy farmer who lives down the road from Matt Parker. 75 00:05:39,260 --> 00:05:40,940 Have any of you heard this before? 76 00:05:41,580 --> 00:05:44,800 His wife, P .D. O 'Brien, is a schoolteacher. 77 00:05:45,080 --> 00:05:47,460 Both are familiar with Parker's work. 78 00:05:48,620 --> 00:05:53,300 So our grandchildren, about eight of them, grew up on this video. 79 00:05:53,940 --> 00:05:55,400 And it was wonderful. 80 00:05:56,920 --> 00:06:01,200 They loved it. And the kids would just sit there mesmerized by it. 81 00:06:02,460 --> 00:06:04,900 He was like a pillar of society. 82 00:06:05,600 --> 00:06:07,760 Why would we not trust someone like that? 83 00:06:08,400 --> 00:06:09,450 Daddy! 84 00:06:10,090 --> 00:06:11,950 There's a spider in the bathtub. 85 00:06:12,870 --> 00:06:15,890 You know, we just felt very comfortable around him. 86 00:06:18,470 --> 00:06:22,790 Parker begins his pitch by talking about his vision for the movie. 87 00:06:23,150 --> 00:06:30,149 It's a film about that sweet and precious and deeper place that 88 00:06:30,150 --> 00:06:35,089 we all have inside of us. It's a film about that deeper truth, and it's a 89 00:06:35,090 --> 00:06:38,870 reflection. It's a mirror that holds that up to you and says, 90 00:06:39,950 --> 00:06:44,310 I know you're in there. I did say to him, are you religious? 91 00:06:44,650 --> 00:06:50,309 Because I said, I'm not really interested in doing this if this is for 92 00:06:50,310 --> 00:06:51,360 religious reason. 93 00:06:52,070 --> 00:06:54,750 And he said, oh, no, no, it's not religious. 94 00:06:55,610 --> 00:06:57,950 The conversation then turns to money. 95 00:06:58,710 --> 00:07:02,710 Parker offers 15 % annual returns on investment. 96 00:07:03,250 --> 00:07:08,610 That was very, very good money. So I invested right off quick with him. I 97 00:07:08,630 --> 00:07:09,680 geez. 98 00:07:09,720 --> 00:07:11,040 I can't do better than that. 99 00:07:11,860 --> 00:07:17,419 We just thought that this was a great project and a great idea, and let's take 100 00:07:17,420 --> 00:07:18,470 advantage of it. 101 00:07:18,540 --> 00:07:25,060 In 2003, Bryson and O 'Brien write their first check to Mac Parker for $50 ,000. 102 00:07:27,220 --> 00:07:31,400 Bryson is quick to remind Mac that he earned his money the hard way. 103 00:07:32,420 --> 00:07:35,940 I farmed their milk cows for over 40 years. 104 00:07:36,240 --> 00:07:37,820 That was seven days a week. 105 00:07:38,830 --> 00:07:42,650 365 days a year. It doesn't matter if it's Christmas, New Year's, a wedding, 106 00:07:42,730 --> 00:07:43,780 funeral. 107 00:07:44,450 --> 00:07:47,710 You had to be out there in your family at least 12 hours a day. 108 00:07:50,450 --> 00:07:54,829 And I used to say to him all the time, Matt, I cannot lose this money. This is 109 00:07:54,830 --> 00:07:55,880 my retirement. 110 00:07:56,510 --> 00:07:59,790 Make damn sure I don't lose it. Oh, you will never lose your money. 111 00:08:00,190 --> 00:08:02,490 I promise you will never lose your money. 112 00:08:05,070 --> 00:08:06,550 I promise people. 113 00:08:07,320 --> 00:08:12,080 that they would be repaid, not because I was trying to swindle them. 114 00:08:12,480 --> 00:08:16,620 I genuinely believed that they would be repaid. 115 00:08:17,160 --> 00:08:24,019 Eventually, Bryson and O 'Brien will trust Parker enough to put $257 ,000 116 00:08:24,020 --> 00:08:25,160 the birth of innocence. 117 00:08:26,200 --> 00:08:29,210 We weren't concerned because he had such a good reputation. 118 00:08:29,560 --> 00:08:32,419 He was such a nice, soft -spoken person. 119 00:08:34,080 --> 00:08:35,820 Next on American Greed. 120 00:08:36,570 --> 00:08:41,710 See how a homegrown film spins out of control into a $28 million fraud. 121 00:08:42,669 --> 00:08:46,630 In retrospect, the question becomes, how could you do this? 122 00:08:46,850 --> 00:08:49,650 Such strange, destructive things. 123 00:08:50,030 --> 00:08:55,569 And later, we go behind the curtain and discover the film's silent partner, a 124 00:08:55,570 --> 00:08:59,670 man who believes he can walk through walls and time travel into the future. 125 00:09:00,130 --> 00:09:03,320 It kept getting crazier and crazier and crazier as time went on. 126 00:09:16,330 --> 00:09:20,210 I'm on my way to town, you see. I got some place I got to be. 127 00:09:20,510 --> 00:09:27,149 Mac Parker has parlayed his sterling reputation as a folksy storyteller into 128 00:09:27,150 --> 00:09:29,470 new career as an independent filmmaker. 129 00:09:30,730 --> 00:09:37,069 But unlike many small -budget filmmakers, Parker discovered he has a 130 00:09:37,070 --> 00:09:38,120 fundraising. 131 00:09:40,470 --> 00:09:43,590 I went to farmers. I went to my neighbors. 132 00:09:44,300 --> 00:09:49,099 I went to people who just trusted me inherently because 133 00:09:49,100 --> 00:09:52,680 they knew me. 134 00:09:53,840 --> 00:09:56,140 It was all, you know, face to face. 135 00:09:57,160 --> 00:10:01,099 Mac would come by your house, tell you the story of what he's trying to do and 136 00:10:01,100 --> 00:10:02,680 how he wants to make this film. 137 00:10:03,580 --> 00:10:10,479 I would make a point of looking lenders directly in 138 00:10:10,480 --> 00:10:15,980 the eye and saying, I promise you, that this money will be repaid. 139 00:10:17,480 --> 00:10:22,919 Mac tells a story once about being short of money, going to a farmer and going 140 00:10:22,920 --> 00:10:26,110 out to his tractor. He's got farmers out in the field on a tractor. 141 00:10:26,340 --> 00:10:28,480 And he asked the guy, can you help me out? 142 00:10:29,360 --> 00:10:33,030 He got off his tractor. He said, just go in and have my wife write you a check. 143 00:10:33,920 --> 00:10:34,970 Just like that. 144 00:10:35,400 --> 00:10:37,380 Where did that trust capital come from? 145 00:10:37,520 --> 00:10:39,900 It came from that body of work. 146 00:10:40,270 --> 00:10:44,030 Because those people felt like he spoke for them like nobody else ever had. 147 00:10:44,150 --> 00:10:49,049 Well, if you're really sold on the old pig's charm, come pay a little visit to 148 00:10:49,050 --> 00:10:50,100 the Piggy Farm. 149 00:10:52,830 --> 00:10:58,249 As the money rolls in, Parker begins filming The Birth of Innocence with a 150 00:10:58,250 --> 00:11:00,270 production crew in 2002. 151 00:11:04,170 --> 00:11:09,349 In his letters to investors, he uses seductive language to talk about the 152 00:11:09,350 --> 00:11:10,400 of filmmaking. 153 00:11:10,610 --> 00:11:15,069 Remember, he is a storyteller. The letters to the investors would start off 154 00:11:15,070 --> 00:11:18,130 saying, everything's going great, we're getting there. 155 00:11:18,890 --> 00:11:25,329 In June 2004, Parker writes, there is a grace, a power, and a momentum behind 156 00:11:25,330 --> 00:11:29,510 the project that is unmistakable and a joy to experience. 157 00:11:29,511 --> 00:11:35,139 It was sort of like, yes, the power is there, you know, it's happening. There's 158 00:11:35,140 --> 00:11:40,159 a force behind us and we're all being moved along by this force that's going 159 00:11:40,160 --> 00:11:43,139 make this such a wonderful movie. And we're capturing the magic and we're 160 00:11:43,140 --> 00:11:44,190 getting it on film. 161 00:11:45,440 --> 00:11:50,739 Flowery as his language is, to investors, the halo effect seems real 162 00:11:50,740 --> 00:11:51,820 they're getting paid. 163 00:11:51,920 --> 00:11:54,760 And the 15 % returns are steady. 164 00:11:56,020 --> 00:12:00,380 And soon, word spreads beyond Mac's fan base of farmers. 165 00:12:01,120 --> 00:12:04,400 There was a former mayor. There was a judge's wife. 166 00:12:04,600 --> 00:12:07,680 There were lawyers who invested in this. 167 00:12:08,080 --> 00:12:13,080 Mac called me one year in 2002, and I said I was interested. 168 00:12:13,940 --> 00:12:15,840 But there were architects. 169 00:12:16,200 --> 00:12:17,840 There were all sorts of people. 170 00:12:18,940 --> 00:12:23,920 I would sometimes raise as much as $100 ,000 or $150 ,000 a week. 171 00:12:25,610 --> 00:12:31,789 Even Jerry Greenfield of Ben & Jerry's Ice Cream invests, believing it's a good 172 00:12:31,790 --> 00:12:32,840 works film. 173 00:12:34,270 --> 00:12:36,990 But the film production drags on for years. 174 00:12:37,870 --> 00:12:43,209 Investor Petey O 'Brien Bryson grows tired of hearing that the film is in 175 00:12:43,210 --> 00:12:44,260 -production. 176 00:12:44,670 --> 00:12:47,550 Well, to me, post -production meant that... 177 00:12:47,551 --> 00:12:51,899 You know, it's been produced. We're just putting it together and editing it, and 178 00:12:51,900 --> 00:12:55,219 that's it. It'll be done. But we kept getting that every year. It's in post 179 00:12:55,220 --> 00:12:57,140 -production. It's in post -production. 180 00:13:01,880 --> 00:13:06,960 Eventually, O 'Brien Bryson sees the film at a work -in -progress screening. 181 00:13:07,960 --> 00:13:12,739 I was really trying to understand what the film was all about, first of all. 182 00:13:12,740 --> 00:13:14,360 message did not get through to me. 183 00:13:15,520 --> 00:13:16,840 Return to Innocence. 184 00:13:17,640 --> 00:13:18,780 return to you. 185 00:13:21,080 --> 00:13:25,459 And all of the people, this is another thing I noticed, all except for one 186 00:13:25,460 --> 00:13:30,240 picture of any of the people that were in it, looked like they were no smiles, 187 00:13:30,380 --> 00:13:32,520 nothing. They had like blank faces. 188 00:13:32,960 --> 00:13:34,760 So I didn't know what to think. 189 00:13:36,400 --> 00:13:38,840 I just didn't know what to think. 190 00:13:41,820 --> 00:13:46,560 Film editor Horace Williams is often present at investor screenings. 191 00:13:46,561 --> 00:13:51,259 Well, people would ask him, you know, how much have you spent on this? Because 192 00:13:51,260 --> 00:13:52,939 they had their money into it, right? 193 00:13:52,940 --> 00:13:56,519 And they'd ask, how much did you spend on production? Or how long is it going 194 00:13:56,520 --> 00:13:58,810 take to finish this? Those kind of questions. 195 00:13:58,920 --> 00:14:02,200 And I'm sitting in the back of the room listening. 196 00:14:03,100 --> 00:14:05,240 I remember the $800 ,000 for production. 197 00:14:07,920 --> 00:14:10,340 $800 ,000 is way off the mark. 198 00:14:11,240 --> 00:14:16,379 Investors don't know it yet, but will later learn that by 2009, Mac Parker has 199 00:14:16,380 --> 00:14:21,760 taken in a staggering $28 million from about 700 people. 200 00:14:27,180 --> 00:14:31,279 I suppose when he's just talking to you, you know, you think it's just you and a 201 00:14:31,280 --> 00:14:34,899 few other people he's talked to. But, you know, as we know now, he's spent 202 00:14:34,900 --> 00:14:39,580 thousands and thousands of hours talking to hundreds and hundreds, if not. 203 00:14:40,140 --> 00:14:41,460 a thousand or more people. 204 00:14:41,800 --> 00:14:46,079 We just assumed it was a small number of people. You should never assume things 205 00:14:46,080 --> 00:14:47,700 like that, but that's what we did. 206 00:14:48,400 --> 00:14:49,450 Yeah. 207 00:14:50,500 --> 00:14:53,200 I think we all had a little bit of greed in us. 208 00:14:53,640 --> 00:14:55,740 You know, 15 % is pretty damn nice. 209 00:14:56,820 --> 00:14:59,900 And you just want to say, well, keep it coming. 210 00:15:01,840 --> 00:15:05,000 Next on American Greed, 28 million? 211 00:15:05,720 --> 00:15:06,800 Where's it all going? 212 00:15:06,940 --> 00:15:11,499 During Mac's interviews, he said, you know, like he was an abused spouse and 213 00:15:11,500 --> 00:15:12,920 had this control over him. 214 00:15:13,340 --> 00:15:18,800 Lou is the great and powerful figure calling the shots behind the scenes. 215 00:15:19,260 --> 00:15:22,720 And I'm just sitting there thinking, holy, right? 216 00:15:23,060 --> 00:15:24,800 How am I going to get this film done? 217 00:15:25,000 --> 00:15:26,050 What's going on? 218 00:15:42,410 --> 00:15:46,649 For eight years, Mac Parker's film project, The Birth of Innocence, has had 219 00:15:46,650 --> 00:15:47,700 wind at its back. 220 00:15:48,190 --> 00:15:51,710 But in the fall of 2008, the wind shifts. 221 00:15:54,290 --> 00:15:57,930 Wall Street in panic mode this morning. Worst days on record. 222 00:15:58,270 --> 00:16:02,929 And a financial storm makes landfall. Some of the biggest names in American 223 00:16:02,930 --> 00:16:07,730 business are tonight gone, along with a lot of money and a lot of jobs. 224 00:16:08,230 --> 00:16:10,810 Parker's investors are understandably worried. 225 00:16:11,480 --> 00:16:15,180 We are faced with the prospect of a global meltdown. 226 00:16:16,320 --> 00:16:21,699 He not only reassures them that their money is safe, he doubles down, 227 00:16:21,700 --> 00:16:24,220 to Assistant U .S. Attorney Michael Drescher. 228 00:16:24,820 --> 00:16:31,239 In an investor update dated December 2008, Mack wrote to his investors, So, I 229 00:16:31,240 --> 00:16:34,080 raising more money from both new and current investors. 230 00:16:34,081 --> 00:16:37,219 Do you have additional money you would like to invest? 231 00:16:37,220 --> 00:16:39,750 Do you know other people who might be interested? 232 00:16:39,751 --> 00:16:42,969 A lot of people are thinking differently about their money right now, looking 233 00:16:42,970 --> 00:16:45,249 for investments that are safe and lucrative. 234 00:16:45,250 --> 00:16:46,630 Birth of Innocence is both. 235 00:16:47,870 --> 00:16:48,920 He's a storyteller. 236 00:16:49,090 --> 00:16:55,309 He could tell you anything you wanted to hear and convince you that it was the 237 00:16:55,310 --> 00:16:56,360 truth. 238 00:16:56,890 --> 00:17:01,309 I think that most of them were, like, swept up by this. I have never talked to 239 00:17:01,310 --> 00:17:05,470 an investor who, in the middle of all of this, before things went bad. 240 00:17:06,040 --> 00:17:10,039 That they said, oh, wait a minute, this is a bunch of hooey, you know, I want my 241 00:17:10,040 --> 00:17:12,318 money, I'm getting out of this guy's, like, come on. 242 00:17:12,319 --> 00:17:16,199 Everybody, I think, pretty much, I never had any sense that anybody was very 243 00:17:16,200 --> 00:17:20,420 skeptical. You know, we just didn't ask enough questions, for one thing. 244 00:17:20,920 --> 00:17:23,079 Because we had that full trust in him. 245 00:17:24,960 --> 00:17:28,740 Armand Bryson even refers friends to Mac Parker. 246 00:17:29,020 --> 00:17:33,899 People like Jerry Rule, a man who started a garbage hauling business right 247 00:17:33,900 --> 00:17:34,950 of high school. 248 00:17:35,110 --> 00:17:39,369 I went out door to door and got 200 people to sign up and put an ad in the 249 00:17:39,370 --> 00:17:41,050 and the phone rang off the hook. 250 00:17:43,430 --> 00:17:47,230 Nearly two decades later, Rule's business is thriving. 251 00:17:48,790 --> 00:17:54,629 But when he first meets Mac Parker in 2008, Rule is trying to bounce back from 252 00:17:54,630 --> 00:17:56,350 an epic run of bad luck. 253 00:17:59,570 --> 00:18:02,570 It begins with a fateful ride on a motorcycle. 254 00:18:03,630 --> 00:18:07,670 Front tire blew out, and my left femur took the blow. 255 00:18:09,490 --> 00:18:11,810 I went a 50 -foot drop over the bridge. 256 00:18:13,170 --> 00:18:15,150 I was in intensive care for four days. 257 00:18:15,890 --> 00:18:17,950 I lost 42 % of my blood. 258 00:18:18,750 --> 00:18:19,890 I almost died. 259 00:18:22,270 --> 00:18:28,490 At the time he's recovering, Rule is divorcing his wife, raising four 260 00:18:28,810 --> 00:18:32,090 and struggling to keep up with work. 261 00:18:32,091 --> 00:18:36,029 I was having a difficult time trying to run the business from a cell phone in my 262 00:18:36,030 --> 00:18:41,670 bed, and they really needed me there. I was the heartbeat of that business. 263 00:18:43,750 --> 00:18:48,169 A month and a half after the accident, Jerry's wife dies suddenly from an 264 00:18:48,170 --> 00:18:51,730 infection. I had a lot on my mind at that time. 265 00:18:52,010 --> 00:18:58,449 I was dealing with my kids, you know, and the death of their mother and 266 00:18:58,450 --> 00:19:01,390 arrangements, and I was busted up. 267 00:19:02,090 --> 00:19:04,380 and my kids are, like I said, taking care of me. 268 00:19:05,070 --> 00:19:11,869 My competitor came in and offered me to buy my business, and I just figured I 269 00:19:11,870 --> 00:19:12,920 had to. 270 00:19:14,350 --> 00:19:17,830 Rule sells the business and pockets $2 million. 271 00:19:20,850 --> 00:19:26,389 Around this time, Mac Parker hears that Rule has come into significant money and 272 00:19:26,390 --> 00:19:28,190 meets with him to talk about his film. 273 00:19:28,750 --> 00:19:34,669 Rule is suspicious of the high rate of return Mack promises, 20%. But 274 00:19:34,670 --> 00:19:38,290 ultimately, that 20 % proves irresistible. 275 00:19:38,870 --> 00:19:44,849 Because I am disabled now, my main purpose was to take the money that I had 276 00:19:44,850 --> 00:19:51,850 and get it to make as much as I could to get me through as long as I could. 277 00:19:53,930 --> 00:19:59,149 With the $2 million from the sale of his business, Rule buys this motel in 278 00:19:59,150 --> 00:20:00,290 upstate New York. 279 00:20:01,190 --> 00:20:02,240 And the rest? 280 00:20:03,470 --> 00:20:08,809 I put everything I had, every penny I had that was left into the film with Mac 281 00:20:08,810 --> 00:20:12,050 Parker, which really put me in a real jam. 282 00:20:19,190 --> 00:20:24,189 For five years, Horace Williams has worked as the editor and composer for 283 00:20:24,190 --> 00:20:25,250 Birth of Innocence. 284 00:20:25,550 --> 00:20:29,330 He works for a fee and knows nothing about the film's financing. 285 00:20:31,530 --> 00:20:37,229 In the fall of 2009, Parker tells Williams that a financier is about to 286 00:20:37,230 --> 00:20:42,809 major investment in the film, and he's coming into town, driving from Oregon to 287 00:20:42,810 --> 00:20:43,860 Vermont. 288 00:20:44,630 --> 00:20:49,049 I'm thinking to myself, this doesn't make sense because who's this guy, Arlo 289 00:20:49,050 --> 00:20:50,210 Guthrie? You know. 290 00:20:50,730 --> 00:20:52,230 In a Volkswagen or something? 291 00:20:52,231 --> 00:20:55,269 What's he doing driving across the country? 292 00:20:55,270 --> 00:20:57,070 That's the first red flag for me. 293 00:20:58,730 --> 00:21:03,109 Then I get a phone call in which Mac tells me, by the way, the film was this 294 00:21:03,110 --> 00:21:03,989 guy's idea. 295 00:21:03,990 --> 00:21:07,609 He called me up in 1999 and said, you're making a film. It's going to be called 296 00:21:07,610 --> 00:21:09,590 Birth of Innocence, and it's about this. 297 00:21:09,790 --> 00:21:12,260 And by then, I'd been working on it for five years. 298 00:21:13,310 --> 00:21:17,649 And also, by the way, this guy is very spiritually enlightened. He's almost to 299 00:21:17,650 --> 00:21:19,760 the point where he can walk through a wall. 300 00:21:23,450 --> 00:21:28,710 And I'm thinking, huh, Mac, knock, knock. 301 00:21:28,711 --> 00:21:32,929 Red flags are going off like mad. They're flying off, you know, they're 302 00:21:32,930 --> 00:21:33,980 out of the bag. 303 00:21:34,090 --> 00:21:38,490 A short time later, Mac's savior arrives at Horace's film studio. 304 00:21:39,390 --> 00:21:44,849 Mac introduces him as Lou Sotario, his spiritual advisor and the inspiration 305 00:21:44,850 --> 00:21:46,730 behind the birth of innocence. 306 00:21:47,820 --> 00:21:52,880 And in the midst of it all, he's gesturing wildly, strutting around the 307 00:21:53,000 --> 00:21:55,760 quoting from script that must have been his. 308 00:21:56,620 --> 00:22:02,899 If you can imagine along the lines of, the greatest act of love is to love 309 00:22:02,900 --> 00:22:04,820 yourself into forever. 310 00:22:06,360 --> 00:22:11,420 And I'm just sitting there thinking, holy, right? 311 00:22:11,740 --> 00:22:13,480 How am I going to get this film done? 312 00:22:15,100 --> 00:22:16,150 What's going on? 313 00:22:16,860 --> 00:22:20,720 Horace Williams isn't the only one beginning to doubt Mac Parker. 314 00:22:21,140 --> 00:22:24,120 A longtime investor is growing suspicious. 315 00:22:24,800 --> 00:22:28,859 Somebody once asked me about halfway through the 10 years if this was a Ponzi 316 00:22:28,860 --> 00:22:33,379 scheme, and I said, no, it's not a Ponzi scheme. I didn't even know what a Ponzi 317 00:22:33,380 --> 00:22:34,430 scheme was. 318 00:22:35,460 --> 00:22:41,020 Next on American Greed, federal agents expose a decade of lies and deception. 319 00:22:58,120 --> 00:23:04,479 On October 1st, 2009, acting on a tip from a concerned investor, Vermont's 320 00:23:04,480 --> 00:23:08,539 Department of Financial Regulation calls Mac Parker in for some questioning 321 00:23:08,540 --> 00:23:10,460 about the birth of innocence. 322 00:23:10,461 --> 00:23:14,939 During that meeting, they advised Mac that they had serious concerns about the 323 00:23:14,940 --> 00:23:19,700 legality of the project and how he was raising money for the project. 324 00:23:20,800 --> 00:23:24,819 They told him that it wouldn't be a smart idea to continue to raise money 325 00:23:24,820 --> 00:23:26,500 they kind of had a handle on things. 326 00:23:26,910 --> 00:23:28,290 He continued to raise money. 327 00:23:34,870 --> 00:23:38,250 I met the Parkers through this bird, this beautiful bird. 328 00:23:38,570 --> 00:23:41,630 Meet Marigold, a 10 -year -old macaw. 329 00:23:43,010 --> 00:23:48,349 Sharon Goodwin adopts the bird from Mac Parker and his family and eventually 330 00:23:48,350 --> 00:23:50,070 becomes friends with the Parkers. 331 00:23:50,680 --> 00:23:55,999 In establishing the relationship I had with him and his family, I mean, this 332 00:23:56,000 --> 00:23:59,340 family was super nice, sweet. 333 00:23:59,840 --> 00:24:05,659 But in the fall of 2009, Parker makes a business call to Goodwin, who owns a 334 00:24:05,660 --> 00:24:07,980 successful chain of physical rehab centers. 335 00:24:08,420 --> 00:24:11,500 Parker says he needs finishing funds. 336 00:24:12,100 --> 00:24:17,980 As a business person myself, who, when I started the business, didn't have... 337 00:24:18,590 --> 00:24:23,670 an opportunity to get funds. Getting funds is difficult from commercial 338 00:24:24,230 --> 00:24:29,789 So if I could help support him in his dream, it was in essence like supporting 339 00:24:29,790 --> 00:24:35,330 what would have been my dream and other entrepreneurs or people with a dream. 340 00:24:36,870 --> 00:24:43,249 In October 2009, after state regulators warned him to stop, Parker takes $100 341 00:24:43,250 --> 00:24:44,790 ,000 from Goodwin. 342 00:24:45,110 --> 00:24:47,510 Though the contract is signed in October, 343 00:24:48,270 --> 00:24:52,610 Parker dates it September 30th, one day before he got the warning. 344 00:24:53,670 --> 00:24:58,329 He sells it as a benefit. This way, Goodwin will earn an extra month of 345 00:24:58,330 --> 00:24:59,380 interest. 346 00:25:00,630 --> 00:25:05,069 At the time, I thought that that was just a nice gesture on his part because 347 00:25:05,070 --> 00:25:10,689 that was when we were intending to have the transfer of money. I suspect that 348 00:25:10,690 --> 00:25:15,589 the true reason that he backdated it was to protect himself against the state 349 00:25:15,590 --> 00:25:16,640 regulators. 350 00:25:17,610 --> 00:25:22,250 The state catches wind of what he's doing and freezes Parker's bank 351 00:25:23,130 --> 00:25:28,109 I immediately called up Mac and asked all those questions I should have asked 352 00:25:28,110 --> 00:25:29,370 prior to giving him money. 353 00:25:29,450 --> 00:25:34,149 How much money are we talking about? How many people are we talking about? And I 354 00:25:34,150 --> 00:25:37,990 was aghast at his inability to know off the top of his head. 355 00:25:39,510 --> 00:25:41,450 The feds pick up the case. 356 00:25:42,330 --> 00:25:44,790 Special Agent Danny Raycheck of the FBI. 357 00:25:45,390 --> 00:25:51,329 and John Schroeder of the IRS, subpoena Parker's financial records, and 358 00:25:51,330 --> 00:25:53,990 painstakingly recreate the money flow. 359 00:25:54,430 --> 00:25:59,489 It was discovered that less than a nickel of every dollar that was being 360 00:25:59,490 --> 00:26:03,829 invested was actually spent towards the creation of the movie. We're watching 361 00:26:03,830 --> 00:26:07,949 the money flow, trying to find out where things were going, and Luciferio was 362 00:26:07,950 --> 00:26:10,480 obviously a person that was getting a lot of money. 363 00:26:12,880 --> 00:26:15,760 Over the 10 -year period, $28 million was raised. 364 00:26:16,140 --> 00:26:22,259 And of that $28 million, there was approximately $3 .5 million, a little 365 00:26:22,260 --> 00:26:24,970 than $3 .5 million that actually went to Louis Sotirio. 366 00:26:25,360 --> 00:26:27,760 So he was our first lead, really. 367 00:26:28,000 --> 00:26:31,560 We wanted to find out who he was and what his role was in this matter. 368 00:26:32,940 --> 00:26:37,419 From behind the scenes of the birth of innocence, a silent partner has been 369 00:26:37,420 --> 00:26:38,470 calling the shots. 370 00:26:38,700 --> 00:26:40,940 I was just shocked. A silent partner? 371 00:26:41,580 --> 00:26:44,230 You know, he never had told us about a silent partner. 372 00:26:44,540 --> 00:26:49,079 We had no idea. If we'd had an idea that he had that, you know, a silent 373 00:26:49,080 --> 00:26:52,720 partner, hell, no one would have invested with him. 374 00:26:54,820 --> 00:27:01,539 In 1989, Mac's wife, Juliana, suffers from chronic fatigue syndrome, and 375 00:27:01,540 --> 00:27:04,490 conventional doctors have been unable to give her relief. 376 00:27:04,960 --> 00:27:10,320 A friend of hers told her about the amazing healer in Connecticut. 377 00:27:11,130 --> 00:27:14,810 whose name turned out was Lou Sotirio. 378 00:27:16,410 --> 00:27:22,569 Sotirio is a chiropractor, but his practice includes nutrition and New Age 379 00:27:22,570 --> 00:27:24,530 work, or energy work. 380 00:27:24,930 --> 00:27:27,270 Almost instantly, there's some success. 381 00:27:27,610 --> 00:27:28,870 Julianne is doing better. 382 00:27:29,050 --> 00:27:35,429 Mac also starts to get treatments from Lou Sotirio, and they periodically keep 383 00:27:35,430 --> 00:27:36,950 going down. And Lou... 384 00:27:37,290 --> 00:27:41,129 At a fairly early stage, starts talking about, you know, I'm not just doing 385 00:27:41,130 --> 00:27:44,740 chiropractic adjustment here. I'm doing sort of spiritual adjustment. 386 00:27:45,510 --> 00:27:52,049 Lou is a very intense and dynamic and sort of supremely 387 00:27:52,050 --> 00:27:53,350 confident person. 388 00:27:53,550 --> 00:27:59,309 If you want to understand the spiritual world, the laws of God, these higher 389 00:27:59,310 --> 00:28:03,750 potentials that all of us have, I can teach you this. 390 00:28:04,320 --> 00:28:07,460 And there was something in me that was very drawn to this. 391 00:28:08,700 --> 00:28:13,679 And he really ascribed to Lou, and Lou, I think, encouraged this, that Lou did 392 00:28:13,680 --> 00:28:20,279 have godlike features. It starts with healing Juliana, who no one else could 393 00:28:20,280 --> 00:28:21,330 heal. 394 00:28:25,000 --> 00:28:30,900 In 1999, Lou suggests they both go to the Ramtha School of Enlightenment. 395 00:28:31,600 --> 00:28:36,120 a New Age religious movement based in a small town near Tacoma, Washington. 396 00:28:37,240 --> 00:28:44,159 But as a condition of going, Mac had to raise $150 ,000 and give it to Lou as a 397 00:28:44,160 --> 00:28:47,040 sort of a proof that he was committed. 398 00:28:48,100 --> 00:28:50,280 He says, this is your final challenge. 399 00:28:50,520 --> 00:28:52,400 The train is leaving the station. 400 00:28:52,760 --> 00:28:54,940 Are you going to be on that train with me? 401 00:28:55,920 --> 00:29:00,040 Parker raises the money by selling the rights to his children's videos. 402 00:29:01,530 --> 00:29:05,750 And sadly, Mac did go on that train with Lucitario. 403 00:29:09,650 --> 00:29:16,629 In the fall of 1999, Mac Parker, his family, and Lucitario make a pilgrimage 404 00:29:16,630 --> 00:29:18,610 to the Ramtha School of Enlightenment. 405 00:29:18,970 --> 00:29:23,429 They camp with hundreds of other followers on the palatial grounds of Jay 406 00:29:23,430 --> 00:29:26,850 Night. I am Ramtha, the enlightened one. 407 00:29:27,500 --> 00:29:33,059 A woman who claims she can channel the spirit of Ramtha, a 35 ,000 -year -old 408 00:29:33,060 --> 00:29:39,800 warrior. During that time, it was when Lou said, Mac, 409 00:29:40,000 --> 00:29:41,050 there is this movie. 410 00:29:41,640 --> 00:29:45,640 It's called The Birth of Innocence, and we shall do it together. 411 00:29:45,920 --> 00:29:49,540 And that's how this all started in the fall of 1999. 412 00:29:52,340 --> 00:29:56,260 When he gets back home to Vermont, Mac begins raising money. 413 00:29:56,730 --> 00:29:58,810 keeping Lou's existence a secret. 414 00:29:59,190 --> 00:30:05,689 And from the get -go, from the very first conversation, he said, do not 415 00:30:05,690 --> 00:30:11,969 about the money. He said, everybody who invests in the film will absolutely 416 00:30:11,970 --> 00:30:14,130 be repaid. 417 00:30:15,630 --> 00:30:21,090 But Sotirio exerts tremendous influence over the film and its fundraising. 418 00:30:21,930 --> 00:30:23,730 When American Greed returns. 419 00:30:24,810 --> 00:30:30,130 Voicemails from Sotirio to Parker reveal a twisted scheme and bizarre beliefs. 420 00:30:30,430 --> 00:30:31,480 It's so light. 421 00:30:31,790 --> 00:30:32,990 It's so awesome. 422 00:30:33,270 --> 00:30:37,390 My brain's about to explode. My body's starting to just dissolve more and more. 423 00:30:37,391 --> 00:30:39,029 But it's okay. Everything's cool. 424 00:30:39,030 --> 00:30:44,170 Hear more of Lou Sotirio's voicemails at AmericanGreed .CNBC .com. 425 00:30:56,810 --> 00:31:02,769 On the morning of August 3rd, 2010, a team of federal agents executes a search 426 00:31:02,770 --> 00:31:04,750 warrant at the home of Matt Parker. 427 00:31:05,130 --> 00:31:10,429 And there were like 20 of them coming into our house. They had boxes, and 428 00:31:10,430 --> 00:31:17,190 all of them had these FBI flak jackets on it, and they were just... 429 00:31:17,191 --> 00:31:21,219 You know, every agency in the world, there was the Vermont State Police, 430 00:31:21,220 --> 00:31:25,180 was Homeland Security, there was the FBI, there was the IRS. 431 00:31:25,480 --> 00:31:27,260 It was like, my God, what is this? 432 00:31:28,720 --> 00:31:31,180 Parker invokes his right to remain silent. 433 00:31:31,520 --> 00:31:35,420 But agents discover evidence that sheds more light on the scheme. 434 00:31:35,960 --> 00:31:41,359 It turns out Mac Parker was so blindly following his spiritual guru that he 435 00:31:41,360 --> 00:31:46,480 Lucitario signed blank checks tied to a bank account funded by investors. 436 00:31:47,760 --> 00:31:52,019 Mac would give these signed checks to Lou so that Lou can take out what money 437 00:31:52,020 --> 00:31:54,560 wanted. And then he would tell Mac how much he took. 438 00:31:57,840 --> 00:32:04,759 In this voicemail obtained by American 439 00:32:04,760 --> 00:32:08,660 Greed, Lou is heard helping himself to investor funds. 440 00:32:11,060 --> 00:32:13,600 You can hear Lucitario. 441 00:32:14,270 --> 00:32:19,989 Telling Mac that he was going to be putting in for 10, meaning that he was 442 00:32:19,990 --> 00:32:25,309 to be making a deposit of $10 ,000 using one of the blank checks that Mac had 443 00:32:25,310 --> 00:32:27,870 provided him to fill out and deposit. 444 00:32:29,010 --> 00:32:31,030 Tell Mac to put in 10 for this Friday. 445 00:32:31,490 --> 00:32:33,390 Okay, thank you. Bye -bye. 446 00:32:35,410 --> 00:32:40,050 But Lou's central preoccupation is his own spiritual development. 447 00:32:40,890 --> 00:32:46,769 During these voicemails, you can hear Lucitario describing where he is and how 448 00:32:46,770 --> 00:32:52,489 he is coming along in his quest to reach this spiritual state by which he could 449 00:32:52,490 --> 00:32:53,690 leave his physical body. 450 00:32:54,430 --> 00:32:56,250 He calls it dissolving. 451 00:32:56,570 --> 00:32:58,170 Oh, the Parker family. 452 00:32:58,570 --> 00:33:00,690 Oh, I remember them. 453 00:33:01,810 --> 00:33:05,010 Grab one square of toilet paper and you raise that sucker. 454 00:33:05,710 --> 00:33:09,050 And that sucker is heavy compared to just raising my hand. 455 00:33:10,570 --> 00:33:11,620 It's so light. 456 00:33:12,350 --> 00:33:13,530 It's so awesome. 457 00:33:14,490 --> 00:33:18,790 My brain's about to explode. My body's starting to just dissolve more and more. 458 00:33:18,890 --> 00:33:20,510 But it's okay. Everything's cool. 459 00:33:21,110 --> 00:33:22,230 Is he high? 460 00:33:22,830 --> 00:33:24,310 He may be, literally. 461 00:33:24,950 --> 00:33:28,230 Because Telluride, Colorado is a favorite destination. 462 00:33:32,110 --> 00:33:35,490 Lou spent more than $100 ,000 on luxury hotels. 463 00:33:35,890 --> 00:33:38,900 He spent tens of thousands of dollars on skin care products. 464 00:33:39,630 --> 00:33:44,010 He spent about $5 ,000 a month on vitamins and food. 465 00:33:45,630 --> 00:33:48,390 Sotirio's tab totals $4 million. 466 00:33:49,950 --> 00:33:55,029 Matt Parker lives much more humbly in a sparsely furnished house with no 467 00:33:55,030 --> 00:34:01,509 television. But over the course of the fraud, he too spends nearly $1 million 468 00:34:01,510 --> 00:34:06,030 investor money on mortgage payments and other household expenses. 469 00:34:07,980 --> 00:34:13,479 So certainly Mack and his family were benefiting materially from their fear of 470 00:34:13,480 --> 00:34:14,800 the fraud proceeds as well. 471 00:34:15,120 --> 00:34:19,440 But Lou Cetario has a plan to pay back investors. 472 00:34:19,860 --> 00:34:21,080 He called it popping. 473 00:34:21,460 --> 00:34:27,579 Once he could pop and be somewhere else instantaneously, he would be able to 474 00:34:27,580 --> 00:34:30,590 know the numbers on lottery tickets before they were drawn. 475 00:34:31,719 --> 00:34:36,238 by being able to go forward in time to identify winning lottery numbers and 476 00:34:36,239 --> 00:34:38,238 going back in time to play those numbers. 477 00:34:38,239 --> 00:34:42,340 And in that way, they would have access to essentially unlimited funds. 478 00:34:42,780 --> 00:34:49,698 Who in the hell would believe that you're going to leave your body and go 479 00:34:49,699 --> 00:34:54,739 find the lottery numbers and come back and tell Mac so he can buy a ticket? 480 00:34:55,360 --> 00:34:56,920 And we're going to win millions. 481 00:34:56,960 --> 00:34:59,250 What's going on here? And which one's crazy? 482 00:34:59,320 --> 00:35:03,480 Is it Mac or is it Sotirio? Is it both of them? Are they telling the truth? 483 00:35:03,840 --> 00:35:07,300 I wanted to strangle him. Mac, that is. Because he didn't tell us. 484 00:35:09,480 --> 00:35:12,760 For investors, the disillusionment is devastating. 485 00:35:13,560 --> 00:35:19,759 Perhaps no one is more affected than Jerry Ruh, who put up $400 ,000, some of 486 00:35:19,760 --> 00:35:20,920 the last money in. 487 00:35:23,200 --> 00:35:29,579 I believe that he knew he was in trouble and he sat there and completely lied to 488 00:35:29,580 --> 00:35:34,539 me. And to know that my kids had just lost their mother and I was busted up 489 00:35:34,540 --> 00:35:41,299 I was selling my business, he knew that I was in a very poor spot. So he 490 00:35:41,300 --> 00:35:44,640 knew and he completely took full advantage of me. 491 00:35:47,660 --> 00:35:50,600 Parker claims that he too was conned. 492 00:35:50,920 --> 00:35:55,260 by a false prophet who has no special powers and no money. 493 00:35:56,420 --> 00:36:01,279 I genuinely did believe that this film was going to be completed. I genuinely 494 00:36:01,280 --> 00:36:04,960 did believe that Lou was going to repay these people. 495 00:36:06,480 --> 00:36:11,660 It is a fraud to take money from people without telling them the truth. 496 00:36:11,880 --> 00:36:16,219 And the law is clear that even if you believe in your heart of hearts that 497 00:36:16,220 --> 00:36:19,740 you're going to be able to come up with money to repay people. 498 00:36:20,540 --> 00:36:27,120 If you are persuading people to give you their property by telling them lies, 499 00:36:27,520 --> 00:36:28,720 that's a crime. 500 00:36:29,020 --> 00:36:35,839 On March 16, 2012, Mac Parker and Lucitario are indicted on multiple 501 00:36:35,840 --> 00:36:36,890 fraud. 502 00:36:37,180 --> 00:36:39,080 Next, Judgment Day. 503 00:36:39,280 --> 00:36:43,300 Will the masterminds behind the birth of innocence be found guilty? 504 00:37:03,500 --> 00:37:09,659 In the fall of 2010, Mac Parker accepts a plea deal and begins to cooperate with 505 00:37:09,660 --> 00:37:10,740 federal authorities. 506 00:37:11,200 --> 00:37:16,799 He was quite candid, quite cooperative, and spoke at length about the entire 507 00:37:16,800 --> 00:37:18,600 process of the birth of innocence. 508 00:37:20,620 --> 00:37:25,240 It was wrong for me not to tell investors about Lou's involvement. 509 00:37:25,670 --> 00:37:29,549 It was wrong for me to look people in the eye and tell them they could trust 510 00:37:29,550 --> 00:37:34,090 when I was not telling them fundamental information that they deserve to have. 511 00:37:34,270 --> 00:37:37,970 That was simply wrong. And that's a crime. And I accept that. 512 00:37:38,590 --> 00:37:42,770 Faced with the knowledge that his one -time protege will testify against him, 513 00:37:43,230 --> 00:37:45,350 Lucitario also pleads guilty. 514 00:37:45,750 --> 00:37:50,430 And on August 19, 2013, he is sentenced to seven years in prison. 515 00:37:57,000 --> 00:38:02,819 At Matt Parker's sentencing hearing in August of 2013, scores of investors have 516 00:38:02,820 --> 00:38:07,179 the opportunity to address him directly and tell him how the fraud has affected 517 00:38:07,180 --> 00:38:08,230 their lives. 518 00:38:08,980 --> 00:38:11,140 My husband's going to be 80 next month. 519 00:38:11,141 --> 00:38:15,099 And, you know, when you're 80 years old and you've worked on a farm all your 520 00:38:15,100 --> 00:38:21,919 life, and then suddenly you don't have two cents to your name, really, and 521 00:38:21,920 --> 00:38:25,800 you have to continue working so that you can keep your home. 522 00:38:26,510 --> 00:38:30,610 You know, things like that really bothers me. 523 00:38:32,850 --> 00:38:36,310 Petey and Armand lost $257 ,000. 524 00:38:37,030 --> 00:38:42,230 Petey now works part -time jobs, and Armand now works as a rural mail 525 00:38:42,810 --> 00:38:45,530 I intend to work at least another three, four years. 526 00:38:46,230 --> 00:38:47,280 Maybe longer. 527 00:38:48,610 --> 00:38:54,450 That was my retirement, along with my Social Security. 528 00:38:56,200 --> 00:38:57,250 That's the fact of it. 529 00:38:58,120 --> 00:38:59,170 All the way through. 530 00:39:02,120 --> 00:39:07,259 For Jerry Rule, who endured a string of misfortune beginning with a nearly fatal 531 00:39:07,260 --> 00:39:12,220 motorcycle accident, investing with Mac Parker was the last straw. 532 00:39:12,940 --> 00:39:15,020 I'm lost. I'm a lost soul. I'm a shell. 533 00:39:15,380 --> 00:39:19,759 My kids are suffering because of that, but that's the only thing that holds me 534 00:39:19,760 --> 00:39:20,810 together. 535 00:39:20,900 --> 00:39:23,900 If I didn't have my kids and my family, I don't know. 536 00:39:24,620 --> 00:39:25,880 I don't know if I'd be here. 537 00:39:26,880 --> 00:39:28,500 It's damaged me that much. 538 00:39:31,140 --> 00:39:36,559 The U .S. Attorney's Office argues for a three -year sentence, citing Parker's 539 00:39:36,560 --> 00:39:38,540 cooperation with their investigation. 540 00:39:38,640 --> 00:39:43,679 But Judge Christina Rice, after hearing the victim's statements, decides the 541 00:39:43,680 --> 00:39:46,360 prosecutor's recommendation isn't enough. 542 00:39:46,600 --> 00:39:47,650 The judge... 543 00:39:47,950 --> 00:39:53,349 in her discretion, in her wisdom, decided that to satisfy all of the 544 00:39:53,350 --> 00:39:59,469 balancing factors, she reached a balance that dictated a sentence that was 545 00:39:59,470 --> 00:40:01,610 longer than the sentence we suggested. 546 00:40:03,390 --> 00:40:08,069 Mack Parker is sentenced to four and a half years in prison to be served at 547 00:40:08,070 --> 00:40:10,690 federal facility near Lake Placid, New York. 548 00:40:13,870 --> 00:40:16,870 There's one enduring mystery of the case. 549 00:40:17,130 --> 00:40:18,570 Mac's an intelligent man. 550 00:40:19,370 --> 00:40:21,540 Why would he believe something like that? 551 00:40:23,110 --> 00:40:27,969 How did a man who everyone believed was the salt of the earth become so blinded 552 00:40:27,970 --> 00:40:33,049 by greed for spiritual achievement that he ripped off the people he professes to 553 00:40:33,050 --> 00:40:38,469 love? For me, that's the greatest lesson in the whole thing, is that I gave away 554 00:40:38,470 --> 00:40:41,590 my own internal... 555 00:40:42,410 --> 00:40:49,030 I gave away listening to my own guidance, to my own sense of right and 556 00:40:49,170 --> 00:40:50,710 to my own common sense. 557 00:40:54,270 --> 00:40:59,049 Horace Williams is in negotiations to buy the rights to The Birth of Innocence 558 00:40:59,050 --> 00:41:03,670 with the backing of Martine Gigi, a Hollywood producer with Vermont roots. 559 00:41:04,390 --> 00:41:09,610 It's a strange beauty that the making of this movie brought so much heartache. 560 00:41:09,920 --> 00:41:13,899 and so much negativity and so much tragedy, and yet the film itself is this 561 00:41:13,900 --> 00:41:17,480 beautiful, innocent baby that needs to be born. 562 00:41:19,780 --> 00:41:24,559 Gigi says that if the film is released and makes money, a portion of its 563 00:41:24,560 --> 00:41:26,140 will be returned to investors. 564 00:41:26,640 --> 00:41:31,039 And oddly enough, even Parker himself continues to promise that his investors 565 00:41:31,040 --> 00:41:33,140 will be repaid someday. 566 00:41:33,620 --> 00:41:36,020 It's impossible for him to pay us back now. 567 00:41:36,760 --> 00:41:40,430 You can't do a movie. He hasn't got any money. He hasn't got any credibility. 568 00:41:41,700 --> 00:41:44,840 Was it the prosecutor said you can't get blood out of a stone? 569 00:41:48,080 --> 00:41:52,699 And the interesting thing is Mac was not put in a minimum security prison. He 570 00:41:52,700 --> 00:41:55,959 was put in a medium security prison, and I'm sure he's having a really tough 571 00:41:55,960 --> 00:41:57,010 time there. 572 00:41:57,280 --> 00:42:00,700 And I hope he is. 573 00:42:02,510 --> 00:42:07,290 In this interview, conducted less than two hours before he reports to prison, 574 00:42:07,650 --> 00:42:12,690 Parker says prison is part of his spiritual growth, part of his journey. 575 00:42:13,130 --> 00:42:19,550 There is something so real and so powerful about having that sense of 576 00:42:19,670 --> 00:42:22,990 what you thought was yourself, really destroyed. 577 00:42:24,430 --> 00:42:29,650 And then finding, oh my God, here I am. 578 00:42:32,300 --> 00:42:33,940 what I was always looking for. 579 00:42:34,920 --> 00:42:36,820 And here it is. 580 00:42:40,140 --> 00:42:45,879 Next, greed goes west, where a schemer runs wild. And even a secret thing is a 581 00:42:45,880 --> 00:42:48,280 thing. I had no idea what I was going to find. 582 00:42:48,600 --> 00:42:52,580 American Greed, damn scoundrels and suckers. Next on CNBC. 583 00:42:54,980 --> 00:42:58,839 Don't get taken. Be a part of the conversation on Twitter. Hashtag 584 00:42:58,840 --> 00:42:59,889 Greed. 585 00:42:59,890 --> 00:43:04,440 Repair and Synchronization by Easy Subtitles Synchronizer 1.0.0.0 54163

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