Jeffrey Grayson
Encyclopedia
Jeffrey Lloyd Grayson was an American businessman and criminal. A native of Oregon
, he co-founded and later served as Chief executive officer
(CEO) of Capital Consultants. Grayson made legally questionable loans to Wilshire Credit Corporation and its CEO Andrew Wiederhorn
. Grayson was convicted of mail fraud along with his son Barclay Grayson.
. He and his twin sister Janet were born to N. Philip and Blossom Grayson, though the parents divorced in the 1950s. His father was a small business owner. He attended Duniway School in Portland and later graduated from Cleveland High School, also in Portland. Grayson then attended the University of Oregon
in Eugene
where he spent one year on the cheerleading squad and was a member of the Beta Theta Pi
fraternity.
While in college his mother and stepfather were convicted of perjury and concealing assets during bankruptcy in 1961. Grayson graduated with a business degree from Oregon and then enrolled at Willamette University College of Law
in Salem. He left after a single year to work for U.S. Bank
in securities. Grayson’s twin sister died in a car wreck in 1967.
founded Capital Consultants. The company dealt with investment management. The company grew and by 1976 had $140 million in assets under its management including the pensions for Tektronix
and county workers in Multnomah County. Capital Consultants was then the largest independent funds manager in the Pacific Northwest, and at one point had $1 billion in assets under management. The company then had a series of legal issues that included a suspension of the company’s trading license by the SEC and an investigation by the Oregon Attorney General
.
Grayson was diagnosed with multiple sclerosis
at the age of 42, leading him to join the board of the National Multiple Sclerosis Society
’s local chapter. He also was the chairman of the board for the Oregon Museum of Science and Industry
. Grayson’s pledge of $1.5 million to the University of Oregon and chairing their endowment campaign led to the naming of a building on campus for the Graysons, which was later revoked.
In the late 1990s the company and Grayson became involved in a scheme similar to a Ponzi scheme. The U.S. Securities and Exchange Commission sued the company and Grayson in September 2000, a judge later removed Grayson from control of the company, and then federal prosecutors filed a charges for 22 separate counts in October 2001. Grayson pleaded guilty to mail fraud and another charge in the case, and could have received up to four years in jail. He suffered a stroke in 2002 that left him unable to appear or testify in court, and prevented him from being sentenced to prison.
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
, he co-founded and later served as Chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
(CEO) of Capital Consultants. Grayson made legally questionable loans to Wilshire Credit Corporation and its CEO Andrew Wiederhorn
Andrew Wiederhorn
Andrew Wiederhorn is an American businessman from Portland, Oregon. He founded Wilshire Credit Corporation and served as its CEO, by the age of 32 amassing a fortune estimated to be worth $140 million...
. Grayson was convicted of mail fraud along with his son Barclay Grayson.
Early life
Jeffrey Grayson was born on May 4, 1942, in Salem, OregonSalem, Oregon
Salem is the capital of the U.S. state of Oregon, and the county seat of Marion County. It is located in the center of the Willamette Valley alongside the Willamette River, which runs north through the city. The river forms the boundary between Marion and Polk counties, and the city neighborhood...
. He and his twin sister Janet were born to N. Philip and Blossom Grayson, though the parents divorced in the 1950s. His father was a small business owner. He attended Duniway School in Portland and later graduated from Cleveland High School, also in Portland. Grayson then attended the University of Oregon
University of Oregon
-Colleges and schools:The University of Oregon is organized into eight schools and colleges—six professional schools and colleges, an Arts and Sciences College and an Honors College.- School of Architecture and Allied Arts :...
in Eugene
Eugene, Oregon
Eugene is the second largest city in the U.S. state of Oregon and the seat of Lane County. It is located at the south end of the Willamette Valley, at the confluence of the McKenzie and Willamette rivers, about east of the Oregon Coast.As of the 2010 U.S...
where he spent one year on the cheerleading squad and was a member of the Beta Theta Pi
Beta Theta Pi
Beta Theta Pi , often just called Beta, is a social collegiate fraternity that was founded in 1839 at Miami University in Oxford, Ohio, USA, where it is part of the Miami Triad which includes Phi Delta Theta and Sigma Chi. It has over 138 active chapters and colonies in the United States and Canada...
fraternity.
While in college his mother and stepfather were convicted of perjury and concealing assets during bankruptcy in 1961. Grayson graduated with a business degree from Oregon and then enrolled at Willamette University College of Law
Willamette University College of Law
Willamette University College of Law is a private law school located in Salem, Oregon, United States. Founded in 1842, Willamette University is the oldest university in the Western United States...
in Salem. He left after a single year to work for U.S. Bank
U.S. Bancorp
U.S. Bancorp is a diversified financial services holding company, headquartered in Minneapolis, Minnesota. It is the parent company of U.S. Bank, the fifth largest commercial bank in the United States based on $330 billion in assets. U.S. Bank ranks as the sixth largest bank in the U.S. based on...
in securities. Grayson’s twin sister died in a car wreck in 1967.
Capital Consultants
In 1968, Grayson and law school roommate Charles SwindellsCharles Swindells
Charles Joseph "Butch" Swindells is a former United States Ambassador to New Zealand and Samoa. He was appointed to the position by U.S. President George W. Bush, with the strong support of his home state of Oregon's two U.S. Senators. He served from 2001 to 2005.Swindells earned a B.S. from Lewis...
founded Capital Consultants. The company dealt with investment management. The company grew and by 1976 had $140 million in assets under its management including the pensions for Tektronix
Tektronix
Tektronix, Inc. is an American company best known for its test and measurement equipment such as oscilloscopes, logic analyzers, and video and mobile test protocol equipment. In November 2007, Tektronix became a subsidiary of Danaher Corporation....
and county workers in Multnomah County. Capital Consultants was then the largest independent funds manager in the Pacific Northwest, and at one point had $1 billion in assets under management. The company then had a series of legal issues that included a suspension of the company’s trading license by the SEC and an investigation by the Oregon Attorney General
Oregon Attorney General
The Oregon Attorney General is a statutory office within the executive branch of the state of Oregon, and serves as the chief legal officer of the state, heading its Department of Justice with its six operating divisions. The Attorney General is chosen by statewide partisan election to serve a term...
.
Grayson was diagnosed with multiple sclerosis
Multiple sclerosis
Multiple sclerosis is an inflammatory disease in which the fatty myelin sheaths around the axons of the brain and spinal cord are damaged, leading to demyelination and scarring as well as a broad spectrum of signs and symptoms...
at the age of 42, leading him to join the board of the National Multiple Sclerosis Society
National Multiple Sclerosis Society
The National Multiple Sclerosis Society, a United States-based non-profit organization, and its network of chapters nationwide promote research, educate, advocate on issues relating to multiple sclerosis, and organize a wide range of programs, including support for the newly diagnosed and those...
’s local chapter. He also was the chairman of the board for the Oregon Museum of Science and Industry
Oregon Museum of Science and Industry
The Oregon Museum of Science and Industry is a museum located in Portland, Oregon, United States. It contains two auditoriums, including an IMAX Dome theatre, and a variety of hands-on permanent exhibits focused on natural sciences, industry, and technology...
. Grayson’s pledge of $1.5 million to the University of Oregon and chairing their endowment campaign led to the naming of a building on campus for the Graysons, which was later revoked.
In the late 1990s the company and Grayson became involved in a scheme similar to a Ponzi scheme. The U.S. Securities and Exchange Commission sued the company and Grayson in September 2000, a judge later removed Grayson from control of the company, and then federal prosecutors filed a charges for 22 separate counts in October 2001. Grayson pleaded guilty to mail fraud and another charge in the case, and could have received up to four years in jail. He suffered a stroke in 2002 that left him unable to appear or testify in court, and prevented him from being sentenced to prison.