Jesse Bogdonoff

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Jesse Bogdonoff made headlines in 2001 and 2002 after being accused of mismanaging millions of dollars from the nation of Tonga.[1] He had been the financial advisor to the government of Tonga since 1994, claiming to have made the government millions in the rising stock markets of the booming 1990s. At least part of the money is said to have come from selling citizenship offers to those from Hong Kong who were unnerved by the 1997 transfer.

In 1999 the Hong Kong effort had long since ended and he became convinced that the market side of the bubble was about to burst as well. Hence Bogdonoff recommended moving the Tonga portfolio out of the market into what he believed were safe, insurance backed investments managed by Millennium Asset Management Company.

In 2001 he learned that Herchel Hyatt, the owner of Millennium Asset Management Company, had stolen millions of Tonga's money and had filed a false accounting statement for the Tonga account. Bogdonoff arranged a recovery program for Tonga backed by Lloyds of London to protect against the losses.

The Tongan government officials rejected the plan and stated that this money had been intended to improve the nation's infrastructure. They therefore proceeded to sue Bogdonoff and all the parties involved in the transaction for misappropriation.

Without admitting guilt of any fraud, Bogdonoff settled the law suit in 2004 prior to trial.[2]

In 1999, Bogdonoff, who was born on April 1st, had become the official court jester to the king of Tonga with the idea that he could help promote the Kingdom's tourist industry with his unique title. His unusual role as Court Jester made for juicy news copy when the financial scandal hit the media in 2001.

The financial scandal destroyed Bogdonoff's friendship with King Taufa'ahau Tupou IV and his reputation and career as a financial advisor.

To recover his health and spirit Bogdonoff returned to his roots as a professional musician and began a music production company called Open Window Productions. He produced his original contemporary jazz music CDs and DVDs under the stage name Jesse Dean.