A Denver man is accused of mishandling $1.3 million in investments from greater than two dozen individuals — together with skilled athletes in Colorado — by a fraudulent scheme that spanned three years, in response to federal authorities.
Prosecutors with the U.S. Attorney’s Office for the District of Colorado on Monday charged Ian Gregroy Bell, 35, with eight counts of wire fraud, 5 counts of mail fraud and 5 counts of cash laundering, court docket information present. Separately, the Securities and Exchange Commission additionally took civil motion in opposition to Bell, alleging securities fraud.
The two federal complaints painting Bell as an unemployed, unsuccessful dealer who manipulated buyers so as to maintain cash coming in whilst he quickly misplaced it. He didn’t make investments a minimum of $150,000 of the funds he acquired, and used investor cash to pay a bank card invoice and provides funds to his mom, prosecutors allege.
He can also be accused of taking one other $180,000 out of his buying and selling accounts and transferring that cash to his private accounts with out justification, the SEC alleges.
Bell’s legal professional, Harvey Steinberg, declined to remark Tuesday.
Bell is accused of mendacity to buyers about his observe file as a dealer, concerning the degree of threat related to the investments, about how he could be paid for managing the cash, and about how the investments have been performing, the SEC alleges.
Bell despatched pretend screenshots to buyers that purported to indicate the investments have been incomes cash after they really weren’t, the SEC alleges. He repeatedly assured buyers that they have been creating wealth after they weren’t, the SEC alleges.
“Ultimately, Bell misplaced all of the investor cash that he traded,” the SEC’s 42-page criticism reads. “In many circumstances, Bell misplaced investor cash inside days of receiving it.”
The two complaints don’t title the individuals Bell is accused of defrauding and don’t say what sports activities the athletes performed, or when.
The information present a number of individuals gave Bell tens of hundreds of {dollars} between 2020 and 2023, whereas others invested smaller quantities. His buyers regularly referred new shoppers to Bell, and a minimum of as soon as, Bell promised to waive an investor’s charges if the investor recruited a brand new shopper, in response to the SEC.
Bell faces a long time in jail if convicted.
He pleaded not responsible Monday and was launched on a $20,000 bond.
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