A Longmont securities trader who used elderly investors’ retirement money to pay his mortgage has pleaded guilty to a pair of federal crimes, prosecutors said Friday.
Gary Snisky, 48, used his company, Arete LLC, to target elderly annuity holders and relied on legitimate insurance agents he hired to lure them in.
Snisky pleaded guilty Thursday to charges of mail fraud and money laundering in U.S. District Court in Denver. He faces up to 30 years in prison and up to $750,000 of fines when he is scheduled to be sentenced June 18.
A conspirator, Richard Greeott, pleaded guilty to similar federal charges in October. He is to be sentenced April 24.
Snisky originally ran Colony Capital and hired Greeott to develop a website and later an algorithm for an automated trading platform for the futures market. Snisky told investors the platform was performing with purchases in Ginnie Mae bonds.
Snisky shut down Colony Capital in 2011 and opened Arete, claiming the platform was still in use.
Snisky used much of the $5.2 million he took from more than 40 investors in eight states to pay his mortgage and cover commissions to those who sold the investments.
