Two indicted in multi-million-dollar Ponzi scheme

DENVER – Two men have been indicted by a Colorado grand jury on multiple counts of securities fraud connected to an alleged Ponzi scheme to defraud investors in Larimer, Weld, Boulder and Broomfield counties.

Colorado Attorney General John Suthers announced Tuesday that Jason T. Brooks, 30, and Donald S. Carew, 37, were indicted in a scheme that bilked more than $10 million from investors who were told the money they invested would be used to finance an electronics resale business called Genius Inc.

The indictment alleges that Brooks solicited the money between June 2005 and February 2008. Carew was allegedly enlisted to represent companies established by Brooks. Both men are accused of making false statements to investors.

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In the alleged Ponzi scheme, Brooks made payments to earlier investors from money given by later investors. He is alleged to have used the money for personal expenses, including gambling, according to the indictment.

In addition to Northern Colorado investors, the alleged scheme included investors in 15 other states and U.S. territories. Suthers said the two men will be prosecuted in Weld County District Court.