Wednesday, 28 January 2015
Last updated 7 hours ago
Dec 6 2010 | 4:21am ET
Just one month after pleading guilty to running a $71 million Ponzi scheme, Sean Mueller will learn his fate.
The Colorado hedge fund fraudster will be sentenced today in Denver. He faces up to 40 years in prison on the securities fraud, theft and organized crime convictions.
Mueller's scam victimized some 65 investors, including Hall of Fame quarterback John Elway. 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 an April suicide attempt, 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.
Only about $9.5 million remains in Mueller Capital's accounts, against some $140 million in liabilities.
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…