Colorado securities regulators are investigating a Denver investment adviser for allegedly raising more than $30 million without a license and running a Ponzi scheme to enrich himself.
The state securities division and the attorney general’s office are seeking civil penalties against Mark J. Jackson, 54, in Denver District Court, alleging he violated securities laws since 1994.
According to filings by a court-appointed receiver, Jackson hooked investors with promises of returns ranging from 12 to 36 percent while moving money from subsequent clients to pay earlier investors — transactions he recently acknowledged.
Jackson, who lives in Englewood, withdrew about $25,000 a month to fund two country- club memberships and gifts to family members, including a $5,300 monthly allowance for his wife, court records say.
Jackson and his attorney did not respond to requests for interviews Monday.
The case marks at least the third Ponzi scheme investigation to come to light in Colorado in recent months. In April, federal authorities filed civil securities-fraud charges against Shawn Merriman, claiming he bilked friends and fellow churchgoers of up to $20 million. And last week, a state grand jury returned an indictment against Jason T. Brooks for using an alleged phony electronics investment scheme to cheat investors of $10 million.
The Jackson case was initiated by Colorado Securities Commissioner Fred Joseph.
Jackson’s activities are mired in a thicket of financial transactions. He created more than 50 businesses and set up more than 100 accounts with various financial institutions.
The court receiver is seeking a judge’s permission to issue subpoenas to determine whether all of those accounts should be targeted for recovery.
Jackson embarked on his investment scheme in the early 1990s, regulators allege, after his personal investments went bust.
The court documents set this chronology:
In 1994, Jackson sought to use others’ money to trade securities following the lead of his accountant, who introduced him to prospective investors.
When he initially delivered on his investment promises, more people began placing their money with him. Jackson eventually expanded his investment reach through a brokerage agency account where he could “essentially purchase securities on credit.”
The account statements Jackson provided his clients failed to disclose that he was trading on credit, “grossly misstating” the amount of money he was receiving from his trading.
Miles Moffeit: 303-954-1415 or mmoffeit@denverpost.com
