Former John Kerry Advisor Makes News. Seven Accused of Selling Fake Bonds.

The Wall Street Journal reports:

Federal prosecutors charged a former campaign adviser to Secretary of State John Kerry and a second man once dubbed by the media “porn’s new king” along with five others in an alleged scheme involving a Native American Tribal bond offering.

Devon Archer, an adviser to Mr. Kerry’s presidential campaign in 2004, and Jason Galanis, a former investor in the adult-entertainment business, allegedly duped clients into investing more than $43 million in sham bonds issued in 2014 and 2015 by an affiliate of the Oglala Sioux Nation in South Dakota.

Messrs Archer, Galanis and the five other defendants, including Mr. Galanis’s father, then allegedly diverted tens of millions of the bond investments to accounts they controlled and used them to purchase luxury goods and support an initial public offering for a technology company, authorities said.


Lawyers for Mr. Archer and for Mr. Galanis and his father didn’t immediately respond to requests for comment.

All seven defendants were arrested Wednesday, and the Manhattan U.S. attorney’s office charged them with securities fraud. The Securities and Exchange Commission filed related civil charges.

No word yet on this story from John Kerry.