Jeremy Hart and Richard Novaria were arrested on Friday, May 28, 2010,
for their alleged connection to a Northern Colorado
Ponzi scheme that involved $3.5 million. The pair has been accused of duping nearly
25 investors in association with the illegal scam.
According to Colorado Securities Commissioner Fred Joseph, 36-year-old
Mr. Hart recruited a majority of the unsuspecting investors through his
insurance company, Hart Financial Inc. Mr. Hart has been described as
“charismatic and believable.”
“Most of Mr. Hart’s investors were insurance clients of his,
and there were a couple of relatives,” said Mr. Joseph. “They
trusted him implicitly.”
Both suspects have been charged with 29 counts of securities fraud, one
for each of the victims. They have also been charged with one count of
theft. Mr. Hart and Mr. Novaria have each posted a $25,000 bond following
their arrests on Friday.
The Commissioner says that Mr. Hart was allegedly transferring money to
Mr. Novaria, a Greeley man, to invest in Dreamwater Inc, a Windsor-based
investment company. However, according to a statewide grand jury indictment,
Dreamwater failed to make any money.
Authorities received complaints from investors only after the victims made
several attempts to contact Mr. Hart regarding their investments. One
investor claimed that Mr. Hart refused to return any of her calls.