Man Charged In Beachcomber Redevelopment Scam Arrested In Florida

QUINCY, MA — The man who police say raised $1.5 million from 19 investors as part of a bid to buy the Beachcomber across from Wollaston Beach has been arrested.

Scott J. Wolas, known to investors as Eugene Grathwohl, was arrested Friday morning in Delray Beach, Florida, according to the FBI's Boston office. He faces charges of wire fraud and aggravated identity theft in connection with the proposed redevelopment of the former Beachcomber, according to the U.S. Attorney's office. He faces unrelated charges of fraud and grand theft out of New York.

Authorities believe Wolas is the same man who defrauded people for millions of dollars in Orlando and New York City. They alleged that the 67-year-old went by the name Allen L. Hengst and defrauded more than $6 million from clients as a stockbroker in Florida, the Boston Globe reported. Subscribe to Quincy Patch.

Prior to Florida, he used the name Scott J. M. Wolas and was a lawyer in New York. According to a 1996 investigation by the Securities and Exchange Commission and the Manhattan District Attorney’s office, he was investigated for his alleged connection to $20 million in fraud. He went missing in 1997 and remained a fugitive for about 20 years.

Wolas was disbarred in 1999 and his firm reportedly settled a lawsuit with 20 investors for $6 million.

Between 2009-2016, Wolas worked as a real estate agent for Century 21 in Quincy and operated a real estate business known as Increasing Fortune. During his time in Quincy, he raised more than $1.5 million for the purchase and redevelopment of the Beachcomber and the construction of a single-family home on the adjacent property on Quincy Shore Drive, allegedly promising investors to pay out at least 125 percent of the profits related to the single-family home construction.

When the closing day came on Sept. 15, 2016, Wolas was nowhere to be found after leaving town a week earlier. Police say he was last seen at the JFK/UMass train station in Dorchester.

Court documents indicate that the bank account into which Wolas deposited investor funds has been drained and that Wolas allegedly used the money mostly for his personal expenses unrelated to development of the real estate projects.

Authorities believe Wolas used the aliases Allen L. Hengst, Drew Prescott, Frank Amolsch, Endicott Asquith and Cameron Sturge.

Wolas faces up to 20 years in prison, three years of supervised release, and a fine up to $250,000 or twice the gross gain or loss for the wire fraud charge. The aggravated identity theft charge carries a minimum term of two years in prison, one year of supervised release and a fine of up to $250,000.

Wolas' arraignment date has not been determined.

Image Credit: Quincy Police Department