Former stockbroker Clinton D. Fraley of Greenwood Village has been accused by Colorado Securities Commissioner Fred Joseph of violating the anti-fraud provisions of the Colorado Securities Act .
Both Fraley and his company, Wealth by Design Inc., of Englewood, were named in the complaint filed in Denver District Court.
The complaint alleges that Fraley gained unauthorized access to investors’ mutual fund accounts.
The complaint alleges that Fraley solicited hundreds of thousands of dollars from Colorado investors, promising the investors that their money would be invested in “a well balanced portfolio of investments.”
The portfolio that Fraley allegedly touted included Roth IRAs, traditional investments such as stocks and bonds, mutual funds a and non-qualified investments.
Instead, Fraley allegedly gained access to investor accounts, forged investor signatures on checks, and used the money for his own personal use.
Fraley was a stockbroker until his license was terminated in 2011, according to the securities commissioner.
Denver District Judge J. Eric Elliff granted Joseph’s request for a temporary restraining order and froze the assets of Fraley and Wealth by Design.
The investigation is continuing.
Howard Pankratz: 303-954-1939, hpankratz@denverpost.com or
