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While allegedly drumming up some $35 million in at least five separate but occasionally interrelated alleged scams, Justin Costello allegedly told his alleged victims a great many things: That he was a Harvard M.B.A. That he worked for 14 years on the Street. That he was a hedge-fund billionaire. That he would totally take care of that client’s tax bill. That one company he led had $1.6 billion in its care and 10 acquisition deals in hand, and that another was worth 9,000% more than it really was. That he was a decorated Special Forces veteran.

There is now good reason not to believe many or all of those things, as they are all now the subject of a 22-count federal fraud indictment, Securities and Exchange Commission litigation and a further lawsuit from one of the aforementioned tax-liability-holding client. But arguably the most unbelievable bit of Costello’s tale may be that of his military history. Does this sound like the story of a man with extensive experience in blending into his environment on secretive missions?

Costello, who previously lived in Bellevue, Washington, had agreed through his lawyer to surrender last Thursday to the FBI office in San Diego after being informed he had been indicted on criminal charges by a grand jury in federal court in Washington state a day earlier…. But Costello never showed up as promised at that FBI office that day, officials said…./On Tuesday night, Costello was arrested by an FBI SWAT team in El Cajon, California, in San Diego County….

Fugitive Justin Costello arrested in alleged $35 million fraud based on ‘mirage’ of being billionaire, Harvard MBA, Iraq veteran [CNBC]

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