Suicidal Colo. Hedge Fund Manager Faces Criminal Probe

May 10 2010 | 3:47pm ET

The Colorado hedge fund manager talked out of jumping off of a parking garage last month is now the subject of a criminal investigation.

Sean Mueller and his Mueller Capital Management have already been sued by the Colorado Securities Commission, accused of running a $20 million Ponzi scheme. Now, the Denver district attorney has opened a probe of its own, and has begun speaking with representatives of Mueller’s investors.

According to the state’s lawsuit against him, Mueller admitted he scammed investors in a series of e-mails and notes written prior to his suicide attempt. In a note written after the suicide attempt, Mueller admitted that documents claiming his Over-Under Fund managed $122 million were falsified. He wrote that only $15 million remained of the $20.6 million he collected.

Mueller also allegedly promised double-digit returns regardless of market conditions, telling potential investors he had never lost money in eight years and consistently returned between 12% and 25% annually.

Mueller Capital’s assets have been temporarily frozen, although a Colorado judge last week postponed until May 27 a hearing on whether to make the freeze permanent.

“Sean intends to actively and fully cooperate with the Division of Securities, law enforcement and the receiver,” Mueller’s lawyer, Rick Kornfeld, said. “He’s expressed that intention to all of these parties.”

On April 22, Mueller sent an e-mail to clients allegedly apologizing for the fraud and threatening to kill himself. He was later talked down from the second-story ledge of a Greenwood Village, Colo., parking structure.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note