Accused Fraudster Mueller Accepts Asset Freeze

May 28 2010 | 9:43am ET

The Colorado hedge fund manager who allegedly defrauded investors of more than $100 million and then threatened to kill himself has put his own money beyond reach.

Sean Mueller yesterday accepted an indefinite asset freeze. The preliminary injunction, sought by the Colorado Securities Commission, was approved by a judge. Mueller did not admit or deny any wrongdoing in agreeing to the injunction.

Mueller and his Mueller Capital Management have been sued by the CSC and are the subject of a criminal investigation.

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.

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.

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