Two men were indicted by a Denver grand jury Thursday for allegedly bilking 60 investors out of millions of dollars through an elaborate Ponzi scheme.
Indicted were Michael Marshall, 61, and Gregory Russell, 46, who are accused of swindling $9.7 million from unsuspecting investors over two years starting in 2005.
The indictment alleges victims invested with Marshall’s company, Uriels Inc., and received a few months of returns before the money stopped.
Of the more than $9.7 million investors paid to Uriels, $3.5 million was actually invested, according to the indictment.
Russell was jailed Wednesday in lieu of $1 million bail. Marshall, arrested in Wisconsin, was jailed on $500,000 bail.
Both men are charged with violating the Colorado Organized Crime Act. They are charged with multiple counts of securities fraud and theft; conspiracy to commit securities fraud; and conspiracy to commit theft.
Among the people targeted were members of Marshall’s church, Living Water Unity Church, in Arvada. Marshall held promotional events at various hotels in the Denver area, as well as backyard barbecues at his home in Northglenn, according to the grand jury.
The indictment says Uriels’ business plan was to invest in executive real-estate rentals, “fix and flips,” and other financial instruments. Marshall allegedly told investors Uriels’ mission was to help people get “a leg up on life.”
Both men allegedly made claims that were false or they failed to disclose previous business failures, including two bankruptcies by Marshall.
During the alleged scam, Russell promoted his coffee company, Emerald Sierra, and claimed that he owned multiple coffee plantations in South America and had South American assets and connections in the coffee business, the grand jury said.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
