WASHINGTON — The Securities and Exchange Commission has sued William Walters for allegedly running a $16.8 million Ponzi scheme promising investors returns of as much as 40 percent.
Walters, formerly of Lone Tree, lured 80 people to invest in his day-trading business and promised 20 to 40 percent annual returns, the SEC said Wednesday in a statement.
Walters did little trading and used $11.4 million of investor money to pay off prior investors. He used the rest to support a lavish lifestyle, the agency said, including the purchase of expensive cars and homes in Colorado and Hawaii.
A complaint filed in federal court in Colorado says Walters violated securities laws and seeks to recoup money gained from the scheme and civil penalties, the SEC said.
In 2006, Walters left Colorado and fled the country, according to the SEC filing. He was arrested in Argentina after the Colorado attorney general indicted him on nine felony counts of securities fraud. Walters has been released by Argentina authorities on bail pending the outcome of extradition proceedings, according to the complaint.
Walters couldn’t be immediately reached for comment.
