A 39-year-old Colorado native, John Reinholdt II has been found guilty
of charges of a
Ponzi scheme to defraud Colorado and Arizona banks, according to the Denver Business Journal.
Reinholdt may face up to 24 years in prison. The charges are tied to allegations
that he used at least 19 Lafayette-based businesses, including Jaguar
Group LLC, Welend Associated Group, Dakota Lending, and EZ Loans, to fraudulently
obtain money from banks.
Prosecutors maintain that since 2006, Reinholdt has utilized his operating
businesses to secure loans at interest rates between 5 and 7 percent.
He then purportedly used those funds to make subprime loans with interest
rates of 11.5 percent and higher.
Victims allege that he then used money raised from new loans to pay back
older lenders, at times using fictitious (or "straw") homebuyers.
Denver District Court jury members voted to convict Reinholdt of violating
the Colorado Organized Crime Control Act, as well as conspiracy to violate
the Colorado Organized Crime Control Act. Jurors also convicted Reinholdt
of seven counts of defrauding a secured creditor, nine counts of forgery,
and 14 counts of theft-all felonies.
Reinholdt's sentencing is set for March 4, 2011, and he could spend
decades in jail for his alleged fraudulent and Ponzi scheme activities.