When Heroes Stumble
Heroes And Heroines
We all may agree that the world needs heroes and heroines. We need people who are able to perform extraordinary well in spite of their fears, weaknesses and circumstances. We draw strength and courage from their feats and accomplishments. Yet, we mourn when heroes stumble, particularly when a hero allow his human weakness to unravel great work and accomplishments.
Hero And Role Model
Chapman Company and Nathan A. Chapman Jr. were hero and model for any African American who wanted to succeed in the investment-banking world. Nathan’s father was a railroad worker and his mother supplemented the household income as a seamstress. In spite of Nathan’s humble beginnings, he worked his way to the top of Maryland's financial and political society.
Nathan Chapman...the man, the hero
Nathan Chapman was considered one of the most successful African-American money managers in the country. Nathan’s vision was to become a prominent black investment banker and use his power and clout to help minorities enter and succeed in the financial world. Nathan Chapman was close friends with the former Governor of Maryland, Parris N. Glendening. The Governor helped him become chairman of the University System of Maryland's Board of Regents. The Chapman Company was consistently ranked on the Black Enterprise Investment Banks list dating from 1991 until 2003.
Profitable Strategic Alliances
The Chapman Mutual Funds were offered by some of the nation’s largest retirement plans and Retirement plant services. An example of the profitable strategic alliances formed by the Chapman companies was on February 4, 1999, Aetna Retirement Services announced that Aetna Life Insurance and Annuity company has formed an alliance to offer the Chapman DEM™ Equity Fund, managed by The Chapman Company, one of the nation’s leading minority-controlled investment banking firms and broker/dealers. Aetna Retirement Services was a major provider of employer-sponsored defined contribution retirement plans, as well as individual annuities and other investment products.
From Hero To Villain
On June 15th, 2004, Nathan A. Chapman Jr. was on trial in Baltimore Maryland. He and his company were being accused of misappropriated $500,000 from companies he controlled. It gets worst. The Chapman Company and Nathan A. Chapman Jr. lost more than $5 million in State of Maryland pension funds through sham and fraudulent investments.
The State of Maryland entrusted 5 million dollars of the pensions and retirement funds of more than 250,000 teachers, police offices, firefighters, and other government workers. The Chapman companies, at one time managed $140 million plus in state pension funds. Because of selfish intend and extra-marital affairs, this hero became a villain. This villain used the pension funds to illegally prop up the stock of his own struggling Internet company.
Wine Women and Song…
The trial also included allegations that Chapman used money from his companies to buy gifts for women with whom he was having extramarital affairs, including Debra Humphries, a former state pension trustee. Nathan Chapman used checks issued by the Chapman companies for travel or business expenses to fund his fun at a tune of about a half a million dollars.
Regret, Sentence And Restitution
On Monday, November 3rd, 2004, Nathan A. Chapman Jr. was sentenced in federal court (Baltimore Maryland) to seven (7 ½) years in prison on charges including defrauding the state's pension system. Nathan was also ordered to pay ordered to pay more than $5 million in restitution.
The 2005 Black Enterprise Investment Banks list did not mention this once powerful minority owned firm. The firm that promised to help minorities enter and succeed in the financial world….
Federal and State Indictments
The State of Maryland charged Nathan Chapman with mail fraud, wire fraud, securities fraud and conspiracy among other charges. The United States Securities and Exchange Commission filed securities fraud charges against Nathan Chapman, the Chapman companies and selected associates.
When Heroes Stumble, Sometimes They Can’t Get Up
Yes, the world needs heroes. Nathan Chapman was such a hero. Yet, somewhere along the way, he forgot his purpose, passion and mission. When that happened, he became a villain and his heroism was lost. You see, heroes continued to do what is right in spite of their weaknesses and circumstances. Yet, we mourn when heroes stumble, particularly when a hero allow his human weakness to unravel great work and accomplishments. Nathan Chapman has fallen and may never get up. This is a lesson in ethics for all aspiring Financial Services Professionals.