A former hedge-fund manager has been charged with operating a Ponzi scheme after allegedly duping dozens of unsuspecting investors, including former Denver Broncos quarterback John Elway. The Cherry Hills Village man has been accused of operating an investment scam involving nearly $71 million from over 65 investors.
According to the Denver District Attorney’s office, Sean Mueller, 42, has been operating his scam since 2000. Authorities have called it a “classic Ponzi scheme.”
Mr. Mueller allegedly operated the investment scam through Mueller Capital Management. He supposedly used money from new investors to payoff existing ones. Mr. Mueller also used the funds to live an extravagant lifestyle, said Colorado Division of securities investigator Richard Rogers.
John Elway is listed among Mr. Mueller’s victims. It is unclear as to exactly how much Mr. Elway lost with Mueller Capital Management, but it has been estimated to be in the millions. Several company owners and a chief executive officer are also believed to be on the victims’ list of Mr. Mueller’s alleged Ponzi scheme.
Mr. Mueller was arrested on April 22, 2010, after he sent letters to investors stating that the fund that was supposed to have $122 million in assets had only $15 million. He sent his apologies in the letters, as well as threatened to commit suicide. He was later released.
A warrant has been issued for Mr. Mueller’s arrest. Arrangements are underway for his surrender. His bail has been set at $2 million.