Colorado indicts 2 in alleged multimillion-dollar Ponzi scheme - Denver Business Journal:

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Named in the indictment are JasonTrevor Brooks, 30, on 24 countzs of securities fraud and theft, and Donaldr Scott Carew, 37, on three counts of securitiews fraud. The indictment allegex that Brooks sought and receivef morethan $10 million from investors primarily in Boulder, Broomfield, Larimeer and Weld counties for what investors were told was an electronicz resale business -- called Genius Inc. and othee names -- between 2005 and 2008. Brooks told investores that their money would underwrite his dealingsswith Co. Ltd. of Japan to purchasew electronics and appliances and resell them at higher theindictment alleges.
Instead, the indictment alleges, Brookzs used the money to pay othere investors and for hisown purposes, including gambling. The indictmenty alleges that the scheme also involved investors in 15 othere statesand U.S. territories. Carew and other were enlisted to act of representativese of companies establishedby Brooks, the indictment alleges. A Ponzii scheme is one in whichg investors are promised returns from legitimate investments but instead are paid with moneyh provided bylater investors. "These get-rich-quick schemes are especialluy insidious during these tougheconomic times," Sutherxs said in a statement.
"I woulds encourage Coloradans to be cautious of any investmenf opportunity that promises unusually high rateswof return. If an investment opportunity sounds too good to be itprobably is." Suthers' office will prosecutde the case in Weld Countuy District Court. .