Two executives of Direction Labs have been arrested and charged with soliciting investments in a predictive software that they claimed provided stock market investors with signals on when to enter and exit positions.
Prosecutors allege that the Greenwood Village company’s Second Sight software claimed to “take all the guesswork” out of making trades, was “bulletproof” and that investors would “never lose.”
Company chairman Chisan “Chris” Chong, 39, of Aurora, and chief operating officer Steve Linnenkamp, 50, of Castle Rock, face multiple counts of felony securities fraud and theft.
Affidavits filed in the case allege that Chong and Linnenkamp solicited more than $800,000 from one family alone. Investigators also claim the men solicited money for a “trading investment” for the investors’ benefit and later asked for additional funds to keep Direction Labs in operation.
None of the investors has received any money back, according to the allegations.
After their arrests, Chong was released on $75,000 bail and Linnenkamp was released on a $10,000 personal recognizance bond.
