HUDSON, Colo.—Federal lawsuits have been filed by shareholders and the Securities and Exchange Commission over disposal of tires at Colorado’s tire mountain.
The lawsuits claim the owners took millions of dollars from investors and allowed the company to go into foreclosure.
Two years ago, Magnum d’Or Resources bought the dump from an owner charged with fraud. The dump has an estimated 80 million scrap tires.
The SEC later alleged in a lawsuit that ex-chief executive Joseph Glusic participated in a kickback scheme that used bogus consultants to funnel more than $7 million in illicit proceeds from the company’s securities.
According to the Denver Post (), Glusic has agreed to pay back some of the money.
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Information from: The Denver Post,
