Colorado Man Sentenced for Ponzi Scheme

A man from Weld County, Colorado, was recently sentenced to 32 years in prison for an investment scheme and was directed to pay $5 million to the investors he defrauded, according to an article from The Tribune.

The man was indicted in 2009 on charges that he accepted more than $10 million from investors in three Colorado counties and residents in 15 other states as part of a Ponzi (also known as a pyramid) scheme. A Colorado ponzi scheme brings in investors and pays the original investors with money obtained from later investors. It typically fails because it runs out of new investors. Investors in this man’s scheme lost between $50,000 and $1 million each.

Apparently, the convicted man started his scheme in June 2005. He kept most of the money he received, although he lost $1.5 million to gambling. He told investors he was investing in an electronics business. Prosecutors say he lied about an agreement with an electronics distributor, potential returns and the risk involved. A man from Massachusetts was also arrested in the case. He acted as a representative of the company and helped to locate investors. He pleaded guilty to securities fraud and was sentenced to four years of probation and was ordered to return the funds.

A white-collar crime conviction can change a person’s life forever. If you have been charged with a Colorado white-collar crime, you need to contact a dedicated and experienced Colorado Springs defense attorney as soon as possible. Timothy Bussey has extensive experience defending those charged with a wide range of criminal offenses in Colorado, including white-collar crimes. For a free consultation, call The Bussey Law Firm, P.C. today at 719-475-2555 to learn more about how we can defend your rights and build a strong case on your behalf.

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