Castle Rock – A Parker man accused of securities fraud and theft left Colorado investors with more than $8 million in losses in less than two years, according to a grand jury indictment.
Robert O. Bryant steered more than 130 investments, ranging from $10,000 up to $425,000, into an elaborate Ponzi scheme run by Orange County, Calif.-based National Consumer Mortgage, according to Colorado prosecutors.
“Individuals who commit securities fraud prey upon the trust and good faith of Coloradans,” Attorney General John Suthers said in a news release. “Cases like this demonstrate that … responsible parties will be held accountable.”
Victims included residents of Arapahoe, Boulder, Denver, Douglas and Jefferson counties, according to the indictment against Bryant, which was handed down Friday.
Salvatore “Sam” Favata is the owner and operator of NCM. Since 2000, Favata, 46, promised up to 60 percent returns to investors, who thought their money was being loaned to borrowers needing short-term funding for real estate development. The loans were supposed to be “secured by real property owned by the borrower and that the loan amount would not exceed 65 percent of the value of the … property,” according to the indictment.
But only about 5 percent of the investor funds were used in the manner presented, according to prosecutors.
“The vast majority of investor funds were used by Favata for personal expenses, (and) for NCM payroll including substantial commissions to Bryant,” according to court documents.
Bryant, who is free on $100,000 bond, appeared briefly Tuesday in Douglas County District Court in Castle Rock. He declined comment.
His attorney, Jeffrey Scott Wittebort, told The Denver Post that Bryant and his family also lost money in the deals and they, too, are victims of Favata.
Bryant has been charged with 49 counts of securities fraud and one count of theft.
His next court appearance is scheduled for April 2.
Staff writer Kieran Nicholson can be reached at 303-954-1822 or knicholson@denverpost.com.
