Friday, 9 October 2015
Last updated 13 hours ago
Aug 8 2014 | 4:31am ET
Victims of hedge-fund fraudster Sean Mueller’s Ponzi scheme, including Denver Broncos legend John Elway, are set to receive a fraction of the $71 million they lost in his scam.
The receiver in the Mueller case is preparing to return about $10 million to victims. Elway, the former Broncos quarterback who is now the team’s general manager, is in line to get $1.4 million of that. He lost $9 million in Mueller’s fraud.
All told, more than 100 claims were filed against the Mueller estate. Claims worth $68.4 million have been accepted.
Mueller pleaded guilty to fraud charges in 2010. Prosecutors said he 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.
He was sentenced to 40 years in prison.
Oct 7 2015 | 4:57am ET
Charity A Leg To Stand On (ALTSO) will hold its 12th Annual Hedge Fund Rocktoberfest – NYC on October 15 and its 4th Annual Rocktoberfest - Chicago on October 22. Read more…