A Jefferson County grand jury has indicted a Lakewood man on four counts of fraud under the Colorado Securities Act involving an investment club he organized in 2006.
Arthur Joseph Dertina, 72, organized the Denver Stock Market Investors Club, a general partnership with its main office located in Lakewood.
The club, which operated from 2006 to 2008, was designed for investors to meet once a month to learn about investment strategy and to make regular investments, according to the indictment released today.
During the two years the club operated, 22 people are alleged to have been defrauded $196,000. Dertina has posted a $50,000 bond and his next court appearance is Aug. 22.
According to the indictment, Dertina changed the bylaws and rules without consulting members. Over time, members began to have less input as Dertina began to make all investment decisions without the members’ consent, the indictment said.
Dertina allegedly used some of the investment club’s money for his personal expenses. He also is accused of using the investment club’s money to start several new “shell” businesses to siphon money from the club.
Investors were not told the money they invested in the club would be used to pay Dertina’s personal expenses or to pay for/into other companies started by Dertina, the indictment said.
The indictment also alleges that Dertina misrepresented the relationship between the club and a well-known investment strategist and author.
