Sunday, 25 January 2015
Last updated 2 days ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…