Colo. Hedge Fund Manager Charged With Fraud, Racketeering

Oct 13 2010 | 12:07pm ET

Hedge fund manager Sean Mueller, who threatened to kill himself just a week before he was sued by Colorado regulators has bigger problems now.

The Mueller Capital Management founder has been charged with racketeering, securities fraud and theft. Mueller is accused of running a $20 million Ponzi scheme and lying to investors about the size and success of his Mueller Over Under Fund.

An arrest warrant for Mueller was issued in Denver, and bail was set at $2 million. He is expected to appear in court on Friday morning.

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 April, when he was talked down from a building in suburban Denver. 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.

Among Mueller's 65 alleged victims is former Denver Broncos legend John Elway.

Mueller's assets were frozen in May.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...