An investment advisor from Wheat Ridge pleaded guilty Monday to bilking investors out of $4.8 million in what officials called a Ponzi scheme.
Perry Sawano, 51, pleaded guilty to two counts of securities fraud and two counts of theft. The Jefferson County District Attorney’s Office said between Jan. 1, 2007 and March 31, 2113 Sawano owned and operated Integrity Financial Consulting (IFC) at 5181 Ward Road in Wheat Ridge. A licensed investment advisor, officials said Sawano advised investors/clients regarding investment opportunities and managed their accounts.
Officials said Sawano received a percentage of their assets as fees for his services. Generally, investors’ money was initially invested in traditional custodial entities, but at times Sawano moved investors’ funds out into “alternative investments,” without notification to investors.
The alternative investments included several financial-based businesses owned and operated by Sawano. He made changes in his clients’ investments without consulting them and provided little, if any, disclosure and information describing risks, merits, or terms and conditions of investments.
Officials said when soliciting investors and advising them, Sawano failed to disclose facts related to how he conducted business and how the investment money would be spent. At times, an investor’s money would be used to pay other investors. At other times, Sawano would deposit investor money in shell company bank accounts that he owned and controlled or managed.
