A Colorado man is accused of bilking more than $10 million from investors through an elaborate multi-state Ponzi scheme.
The Statewide Grand Jury indicted 30-year-old Jason T. Brooks on 24 counts of securities fraud and theft.
According to the indictment, Brooks solicited and accepted more than $10 million from investors in Boulder, Broomfield, Larimer and Weld counties to take part in an electronics resale business. Between June 2005 and February 2008, Brooks told investors he would use their money to underwrite his business with a Japanese firm to purchase electronics and appliances and resell them at significantly higher prices.
But he used investors’ money for personal expenses – including gambling – and to make “interest payments” to other investors.
Attorney General John W. Suthers said that get-rich-quick schemes are especially insidious during rough tough economic times.
“If an investment opportunity sounds too good to be true, it probably is,” Suthers said.
Brooks and Carew will be prosecuted by attorneys from the Office of the Attorney General in Weld County District Court.