Ponzi schemers sentenced to prison

BOULDER – Two Boulder County men were sentenced to prison in Boulder District Court on Wednesday after being convicted of a Ponzi scheme that cost investors more than $18 million.

Michael Kass, 49, of Boulder, received a 10-year prison term sentence, followed by five years of parole and 30 years of probation. Bela Geczy, 58, of Longmont, received an eight-year prison sentence, followed by five years of parole and 20 years of probation.

Many victims who had invested in the duo’s  Dharma Investment Group packed the courtroom to testify in the sentencing hearing. Although the men were ordered to pay restitution, it’s unlikely the victims will be paid back what they lost, the judge said.

Assistant District Attorney Chris Zenisek said he felt the sentence was appropriate but also said that restitution will be an issue. Prosecutors asked for restitution from the two men of $11.4 million, based on investors’ claims.

“It’s unlikely in a case like this,” Zenisek said, referring to the restitution.

Kass had faced a possible sentence of 16 years in prison and Geczy had faced 12 years.

The two men ran an elaborate investment scheme from 2005 to 2008 in which 272 investors lost more than $18 million, according to court documents. The two men collected the money from a group of investors over the course of a year and a half and used about a third of it – more than $6 million – to pay prior investors, according to court documents.

The men were indicted by a Boulder County grand jury in April 2010. About half of the victims were in Boulder County, according to court documents.

Each man pleaded guilty to two counts each of felony securities fraud after accepting deals with prosecutors.

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