The Colorado Securities Commission filed a complaint and issued a temporary restraining order against a Boulder company, alleging that they are violating the anti-fraud and licensing provisions of the Colorado Securities Act.
Mark Hamilton Yost and his company, Yost Co., are accused of defrauding investors in at least one private fund. The company is accused of telling investors that the fund was making money, when it was losing funds instead.
Yost, former chairman of the board at Flatirons Bank in Boulder, also “grossly misrepresented to investors the total assets held by the fund, the individual investors’ current account balances, and the gains and losses of their investments.”
As of Dec. 31, 2009, he claimed total assets to be $28 million, when less than $20,000 existed in the fund.
Yost is also accused of paying himself excessive fees based on the gains reported in the funds. He used investor funds to pay for personal expenses.
The complaint also alleges that Yost paid investment funds to his investors by using money fraudulently obtained from Flatirons Bank in Boulder.