INSIDE

Millionaire swindler taken in by two-for-one lunch offer at Brewster’s Restaurant

By Pat Grubb

Residents driving down Tyee Drive around lunchtime on Saturday, March 12 were taken aback by the sight of a man spread-eagled and being held by men pointing pistols at him.

His mistake? Not knowing that Brewster’s Restaurant does not offer a two for one lunch special on the weekend.

Frederick Gilliland, 53, is accused of defrauding investors of more than $8 million in a Florida investment scam. He had been living in West Vancouver and fighting extradition when he was lured down to Point Roberts for lunch. Once he crossed the border, he was pounced on by federal officers as well as Whatcom County sheriff’s deputies.

Gilliland and four other men were indicted in 2001 on charges to commit wire and securities fraud as well as conspiracy to launder money. Victims say they were promised high returns from little-known banking procedures with little or no risk from 1996 to 2000.

One victim said he was taken in by a Christian friend who introduced him to Gilliland. Given the religious connection he considered the investment was safe. He said he was promised up to 60 percent returns in as little as a week or two in bank investment transaction that was supposedly completely legitimate. He said he was told that the stock exchange and the SEC did not want people to know about the procedures, otherwise, no one would invest in the stockmarkets. He lost $25,000.

At a Tennessee factory, about 50 workers lost all of their retirement money they had pooled together, according to published reports.
While $20 million had been recovered in one scheme, $9 million was unrecovered. Gilliland was living in a West Vancouver apartment block, living what was described as “the high life,” fighting extradition to Florida.

Following his arrest, Gilliland was transported by a U.S. customs boat to Blaine and transferred to U.S. District Court in Seattle. He did not fight his return to Florida.