Colorado Ponzi Victims Set For First Payout

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.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of