STEVEN R. ROWE*

AKA MIKE GROGAN, AKA BOB HEITMAN,

AKA STEVE HEITMAN, AKA JAMES RUBIN ROWE

THE STORY OF STEVEN R. ROWE*

He is a self-described Navy Seal, a Patriots football star, and a million-dollar businessman.

1.      THIS STORY STARTS NEAR THE END OF HIS CAREER  IN 2002 WHEN HIS NAME WAS MIKE GROGAN

The summer of 2000 he came into the town of Oceanside California with several trucks and motorcycles. He paid his apartment rent six months ahead and in cash.

He claimed to be retired from the elite US Navy Seals.
He spent his time in San Diego. He hung out at a bar, the “Harbor Nights.”
He claimed to have played in the Super Bowl and wore the ring to prove it. He claimed to be Mike Grogan, the brother of Steve Grogan of the New England Patriots.
He claimed that he had started work in a software firm and had gotten options on 1 1/2 million shares. He said that the firm was Microsoft. He claimed to be worth $23 million.

While he was there he developed the San Diego bar into a bar and restaurant, naming it Grogan's Irish Steakhouse. This was to be developed into a chain of restaurants. He spent a lot of money taking his friends to dinner and golfing. He always paid for the bill in cash. He dated one of the restaurant's employees. When he was with her, their conversation was focused a lot on and about her and he attentively listened to her. He wanted to improve her credit and bought expensive cars in her name.

He said that he was going to start a CAD/CAM software firm and that he would offer his landlord 15% shares of the company for $10K. Then he offered 15% of the company to his drinking buddy for using a person's credit line and name as a partner and for being able to put his name on company documents. He offered shares of a pizza parlor to his landlord for $30K. His landlord took out two mortgages on his home for $83K and $17K, for a total of about $100K.

He proposed to the employee that he was dating. At the wedding rehearsal dinner two old and scruffy-looking US Marshals walked into the restaurant's back door and asked for Mike Grogan to come into the kitchen to talk with them. They arrested him. They then walked him out the front door past his fiancée and friends.

Bail was set at $10K and his landlord who had no more equity in his own home offered to bail him out using his credit card. But the bail bondsman refused to take a chance on him because Mike Grogan had too many other names and aliases. He left a number of people owing huge debts on the businesses and on the bills for the luxury cars.

*The above material was based on the MSNBC show The Pretender, the story of scam artist Jim Rowe. Sunday, 31 DEC 06

2. IN 1998 HIS NAME WAS BOB AND THEN STEVE HEITMAN

He walked into a Seattle Washington ski shop. He claimed to have 20 years in the military and he said that he wanted to sell skis. It was obvious that initially he knew nothing about skis. But he turned out to be a great salesman.
He claimed to be Bob Heitman, although his ID said that his first name was Steve.

He learned fast and gave a good sales pitch and he did sell skis.
First he claimed to have been in the US Army and then that he was in the Rangers. Then he claimed to have been a US Navy Seal. His name was Steven Dale Heitman, according to his Army discharge papers and the papers said that he was a member of the Special Forces. He claimed to have been awarded the Bronze Star and the Purple Heart.

Eventually the manager of this ski shop fired him because of all of the stories and lies he had been telling. She could not trust him. But while he worked at this ski shop he had met a person whose first name was Dale of Microsoft, who bankrolled his next new business, Nordic Sports Haus.


AT THE NORDIC SPORTS HAUS, HE USED THE NAME STEVE HEITMAN

One day when one of his employee’s pickup truck was in the repair shop he tossed him the keys to his new and expensive Porche sports car so he would have a loaner while his truck was being repaired. He was overheard lying to customers. And none of his employees trusted him.

He and his apparently successful business was written up in the local newspaper and here he further expanded his business background. He now claimed that he served in Germany in the US Army. He had studied at the University of Heidelberg. And that had worked for the Atomic and Head ski companies as a ski designer and field tester.

His original employer saw that he was spending grossly excessive amounts of money for this type of business. Since there were not obscene amounts of money to be made in retail selling of skis, this level of spending sent up all sorts of warning flags for his former boss. At one ski show he spent $10K to transport 6 employees by helicopter and to see a NASCAR race.

He told one of his employees to order cellular phones for his store employees. But the credit check for Steve Heitman revealed that Steve Heitman was dead. His response was that while he was in the service in Europe, he did not have to file for taxes on his income overseas and thus his IRS record had become dormant. He used the money of banks and his investors to buy and set up a 5-ski shop chain.  He met and married a young woman. He also bought a house, 13 acres of land, a jet ski, trail bikes and set up a dirt track.

He ordered far too much ski merchandise. And he became way overdue for payment. He was $400K behind in paying just for snowboards. His terms for this was a 90 day payable and he was an additional 120 days past due (a grand total of seven months). One of his employees complained about over-ordering and being behind on payments. This employee was forced out of the business. Then Steve hooked up with a second Microsoft investor. He then started an exotic car dealership. And soon that business was in financial trouble.

One day he was supposed to meet with his employees and friends and go motorcycle riding. He never showed up and simply disappeared. He took about $1M with him. He had left two businesses that slipped into bankruptcy. His first Microsoft investor who had started in business with Steve, began having $4.6M. At the end he was left with $9.6M in debt.

HOW HE GOT HIS STEVE HEITMAN ALIAS.

Steve Heitman was Steve Rowe's high school classmate who had died at 20 years of age. When the story broke in The East Side Journal about the failed ski business and the scams he had committed, a reporter phoned the mother of the real Steve Heitman. He informed her that someone was probably using her son's name. Steve Heitman’s mother identified the phony’s real name when she identified him as a classmate of her son.

 

3.  AN EARLIER SCAM UNDER THE NAME OF JAMES RUBIN ROWE

He met a person, Ron Nelson, who had a gun collection and who was a pawnbroker. Steve scammed him out of $250K when he took Ron's gun collection worth $250K, sold it for $38K and pocketed all of the money. During this time period Steve appeared at the local high school in uniform, claiming to be a US Navy Seal and talked about sacrifice, friendship, and faith. Ron had lost a son. An in order to win Ron's trust in order to win over Ron, Steve had claimed that he had lost his wife and two children in a fire. Steve would study a person and his family in order to build a bond with them. Steve claimed to be an expert mountain biker and he and Nelson had gone into business together using Nelson's money. But when he left, Ron Nelson had to file for Chapter 7 and Nelson was left bankrupt.

4. PRIOR TO THAT HE HAD BEEN BRIEFLY MARRIED

He met a single woman with two kids and no money. He told her that he was a retired US Navy Seal. And he would take her out in his dress whites when they would go out for dinner. He told her that while he had been to sea his wife and three children had been in a car accident, in a red VW convertible. And he said that his wife and infant were killed outright and his two remaining kids were brain-dead and he had to have the plug pulled on them. Then, six weeks after they met they were married. Then she got a phone call from another woman. She told her that the house and the antique furniture that her new husband claimed to own actually belonged to her and all that he had told her was a lie. His new wife moved out, moved to another location, and changed her name and social security number because this incident rattled her so much.

5. THE EARLIEST DAYS OF SCAMMING PEOPLE

In Massachusetts he drove a truck for a lumber company and he embezzled $22K.

Then in Colorado he worked for a company drilling water wells and there he conned his foreman out of $40-45K.But he did not go to jail for doing this.

He worked in a machine shop in San Diego in charge of quality control, but he bluffed his way into this job. He knew nothing about quality control when he started.

Then he worked for a company that printed blank government checks. He took some of them and cashed one of them for $57K and for that he went to prison. He then walked away from a halfway house.  

STEVE'S ROWE’S TRICKS OF THE SCAM ARTIST

To test someone he would give him or her a bull shit answer to a question of theirs. If they completely, unquestioningly accepted this far-out answer he knew he had a live one on the hook. He stated that he could check out a person in about 45 minutes while he was taking them out for dinner. In about two weeks they would become the best of friends and he would be ready to scam the person. He tried to minimize the magnitude of his crimes and rationalize the damage he had done to others. His father was also a con man -- but not as good -- and his mother was a facilitator and a mark. He did not know how to be legit. It was easier for him to be dishonest and he felt that he could make more money faster being dishonest. He bragged that in four months he had gained access to almost $10M.

HIS MILITARY EXPLOITS

He had actually been in the Navy as a cook, and he had been in the Army and briefly in the Marines. While he was in San Diego he bought a naval officer's (chief's) uniform and then talked his way onto the base. He posed as a Navy Seal. He got civilian investors to invest in a  ship hull cleaning scam. He did this at the base officer's quarters. He got 26 people to invest $10K each, cash -- and he was able to do this in three weeks. In order to assume the identity of his dead classmate he went to the funeral home some time after the funeral. He wore his navy uniform and asked to look at the record book about the funeral details. From this he got the deceased's date of birth, social security number, and mother's maiden name. He was able to get a birth certificate. He then registered at the local community college and got an ID card, then went to the high school and got a transcript, and then proceeded to the DMV to get a driver's license.

CLOSING COMMENTS

He now reads his Bible daily and prays.

He claims to have found religion.

He said that if his friend were still alive he would be laughing his butt off about Steve's exploits.

To cash checks he would go to the same teller. And after three times he wouldn't be asked for an ID. And when he would go into the bank he would wave to and smile at one of the bank's VP's.

HIS TWO RULES FOR CONNING PEOPLE

A fool and his money should never be together in the first place.

Never get attached to anything that you could not leave in 10 minutes.

 

HE CLAIMS THAT HE HATES HIMSELF

The question is whether he is telling people what they want to hear and to say what would get him out of prison the fastest.

ADDITIONAL INFORMATION

 

Obtained from The Seattle Times, Friday, December 21, 2001, 12:00 a.m. Pacific

Business impostor pleads guilty to bank, wire fraud

By Christine Clarridge

James R. Rowe, 40, pleaded guilty to bank fraud, wire fraud, interstate transportation of stolen money, felony possession of a firearm and impersonating a federal agent. He faces up to 30 years in prison, $1 million in fines for each count of bank and wire fraud, and up to 10 years and $250,000 on each of the other charges. He was once one of the country's 15 most wanted fugitives.

Rowe began his most recent ruse in 1998 when he took the name of Steven Heitman, a Ballard High School classmate who had died, and persuaded two Microsoft executives, Dale Watanabe and Ron Hosogi, to invest with him.2000. In October 1999, the two Microsoft executives bought Sports Cars International in Seattle for several million dollars and made Rowe a full partner. In addition, Rowe persuaded Towne Bank of Woodinville to issue a multimillion-dollar loan. It was then, federal prosecutors said, that he began siphoning money out of the business by wiring it to a casino in Las Vegas and living the high life.

"Most of Rowe's alleged illegal activities have been fraud-related," said Deputy U.S. Marshal Brian Morgan. "But over the years, he also has displayed a remarkable talent for taking on false identities."  Rowe also posed as a U.S. marshal to buy guns, officials said. A 1993 fraud conviction had made it illegal for him to buy or possess firearms.

Rowe is also sought for investigation of burglary in San Diego; counterfeiting in Denver; larceny in Lakewood, Colo.; probation violation in Arapahoe, Colo.; and larceny in Adams County, Colo, the Marshal Service said.

 

The Seattle Times, Local News: Sunday, June 16, 2002

Ex-Seattleite gets 12 years for fraud

By Christine Clarridge, Seattle Times staff reporter

A self-professed con man who used the name of a dead classmate to steal millions from local investors and banks has been sentenced to 12-1/2 years in a federal prison....

 

 

synopsis by Peter J Wihtol