A Fort Collins man, who solicited $11 million in investments from approximately 300 Coloradans during a four-year period, has been accused of swindling 41 people out of more than $2.3 million.
The state grand jury accused Gene Robert Little 62, of operating a Ponzi scheme in which he paid early investors in his company – Managed Cash Flow – with money he allegedly swindled from later investors.
The grand jury indicted Little of 42 counts of securities fraud and one count of theft.
According to the indictment, Little formed Managed Cash Flow in May 2002 and solicited more than $11 million from investors from 2002 to 2006, promising them returns of 15 to 20 percent.
Investors would accrue interest on a monthly basis and had the option to let it compound or receive monthly interest checks.
From August 2005 through April 2006, Little received more than $2.3 million in investments from 41 Colorado investors, the indictment said. He used all but $8,631 of that money to pay the promised 15 percent to those who invested prior to August 2005.
The 41 investors never regained their principal investments, totaling more than $2.3 million, said Colorado Attorney General John Suthers and Colorado Securities Commissioner Fred Joseph.
If convicted on all counts, Little would face a minimum sentence of 172 years and millions in fines and restitution, the attorney general’s office said. Little is free on a $50,000 bond.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
