‘Economan’ called a fraud

CHARLESTON, S.C. l Parish has exchanged his loud sports coats for gray prison scrubs and handcuffs. His purple Jaguar with the leopard-skin paint job went up for grabs on EBay. His Red Skelton paintings and million-dollar pen collection likely will be sold.

The flamboyant Mr. Parish, who taught economics at Charleston Southern University, routinely spoke at chamber of commerce meetings and was a go-to authority for the press seeking comments on South Carolina’s economy.

He had almost 600 investors in funds he managed and a Web site that depicted him in a superhero costume, a large “E” for “Economan” emblazoned on his chest.

His fall from grace was as sensational as the life he used to lead.

The 49-year-old is now accused of defrauding his clients of $50 million — duping them into thinking his funds were trading profitably. He pleaded not guilty Wednesday to 10 federal mail and wire fraud counts and one count of making false statements to Securities and Exchange Commission officials.

When federal investigators revealed that they were looking into his investments in April, Mr. Parish was in a hospital, saying he was suffering from amnesia.

He is now in the Charleston County Detention Center. His attorney says the memory loss won’t be part of his defense and that his client is recovering and has cooperated with investigators.

While a judge ordered Mr. Parish held in jail because of worries he might flee, defense attorney Andy Savage will be back in court tomorrow asking a federal magistrate to free his client.

“If you research all the major white-collar crime cases from Enron to Adelphia, all those large volume-dollar cases, everyone was released prior to trial,” Mr. Savage said. Enron Corp. executives were free on bail before the convictions last year, as were Adelphia Communications Corp. founder John Rigas and his son, Timothy, whose fraud convictions were affirmed last week.

Officials have been unraveling details of Mr. Parish’s spending in a scramble to find his assets. But they say it is too early to tell how much they might be able to recover for the investors.

Authorities also say Mr. Parish was not registered with the state or with SEC to deal in securities and that he promised investors returns well beyond Wall Street’s wildest dreams.

Some of those investors include an elderly Charleston couple who invested $35,000 — money that was to be used for the man’s Alzheimer’s care. A Florida man invested money hoping to pay for care for his special-needs son. A widow invested her retirement money; a young financial consultant the $10,000 he saved since graduating from college several years ago.

Perhaps the biggest potential loser is Charleston Southern, which invested $10.6 million in school scholarship money with Mr. Parish.

College President Jairy Hunter says the Baptist-affiliated college of about 3,000 students may suspend hiring and some building projects but does not plan to cut scholarships or jobs — except for Mr. Parish’s.

He was fired after the scandal broke. Mr. Parish faces lawsuits from his clients and the school, which in turn is being sued by investors who charge that many of his financial transactions were conducted on campus.

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