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Colorado Hit Hard by Latest Ponzi Scheme

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Jason Trevor Brooks took money from his investors and used it pay for his personal expenses, including gambling, according to a grand jury indictment charging the Erie man with multiple counts of securities fraud and theft. Brooks, who operated under Genius Inc. and similar names, is accused of making fake “interest payments” to investors using the investors’ own money or subsequent investors’ cash, rather than the profits he claimed, reports The Denver Post, which cites one case in which Brooks allegedly promised a client 35 percent profit on an investment within a month. Brooks, who is sitting in a Boulder jail, was indicted on 24 counts in the $10 million Ponzi scheme that spanned 15 states, but mainly hit investors in Boulder and Broomfield, and Larimer and Weld counties, writes the Denver Business Journal. Yet the hardest-hit in the scam appear to be investors from Roswell, New Mexico, who lost more than $1 million and $750,000, notes the Greeley Tribune. Brooks told investors their money was being used to purchase Japanese electronics and appliances, and that he would resell them at higher prices, according to the indictment. Donald S. Carew of Broomfield was also indicted on three counts, writes the Boulder County Business Report.

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