The operator of a Colorado company has recently been arrested at the Denver International Airport resulting from allegations of illegal activity by his company. Colorado police suspect that the executive committed various crimes including mail fraud and money laundering. He faces several years in prison and steep fines if convicted.
The executive operated a company called Colony Capital LLC, which is a private equity firm that offered investment opportunities through futures trading and bonds. The executive is accused of promising investment bonds to various persons and allegedly never investing them. This means that he is accused of laundering nearly $4 million from July 2011 to Jan. 2013.
He has been charged with 13 counts of wire fraud, and each charge carries a 20 year sentence in federal prison as well as a potential $250,000 fine. Additionally, he faces five counts of money laundering, and each charge potentially carries a 10 year sentence as well as a $500,000 fine. The arrest also supposedly includes an asset forfeiture allegation.
The Colorado executive’s claimed co-conspirator was also arrested, and he was offered a plea deal last month. In light of this circumstance, it is possible that the executive will also be offered a plea deal. Since he faces a potential 310 years in federal prison and $750,000 in fines, it can be assumed that a plea deal would decrease the prison time he would face for pleading guilty. Depending on a careful review of all the evidence, an informed decision may be made as the best manner in which to proceed in his mail fraud and money laundering case.
Source: Denver Business Journal, Longmont man arrested at DIA in investment-scheme probe, Heather Draper, Nov. 21, 2013