DENVER—Three men are suspected of operating a $5.7 million investment scheme in which 70 investors were allegedly defrauded of money.
Colorado Attorney General John Suthers announced the indictment Wednesday. Investigators say the men conducted seminars to recruit investors and then failed to tell them that their investments would fund unsecured promissory notes and pay for legal fees.
Forty-year-old David Piatt and 48-year-old Timothy Burk of Glendale are accused of conducting the seminars. Fifty-year-old Phillip Trujillo of Loveland is accused failing to disclose that he lent himself money from the fund and paid himself commission.
A civil case filed by the U.S. Securities and Exchange Commission is also pending in U.S. District Court.
