Hedge Fund Manager Mueller To Plead Guilty

Oct 18 2010 | 10:59am ET

Sean Mueller, the Colorado hedge fund manager who threatened suicide just before the collapse of his alleged $20 million Ponzi scheme, will plead guilty to defrauding investors.

Mueller was charged with racketeering, securities fraud and theft last week. On Friday, he waived his right to a preliminary hearing, and his attorney said that a plea deal has been reach with prosecutors.

"We have reach an agreement that will be settled," Rick Kornfield said. The plea deal will be made public at a Nov. 1 hearing.

Mueller has been held in custody since turning himself in last week, and has not sought bail. "Mr. Mueller is very sorry and very remorseful," Kornfield said. "It is genuine."

According to prosecutors, Mueller lied to investors about the size and success of his Mueller Capital Management and its Mueller Over Under Fund. 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. According to prosecutors, only $9.5 million remains.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note