Blog

By: Michael de Yoanna

Category: Business, Panorama

Posted: March 25, 2010 11:47 AM

Tags: PEOPLE, Crime

Cary Kahn: Colorado's Latest Investment Scammer

When Bernie Madoff was sentenced last year to 150 years in prison, it was clear that, although far removed from the finance culture of New York, Colorado was not immune to the scandal. Not only did Madoff's dealings strike Colorado, but the state has weathered several smaller, alleged, Madoff-like scams. Jason Trevor Brooks was accused of taking money from his investors and using it to pay for his personal expenses, including gambling, and Wayde and Donna McKelvys allegedly failed to deliver on their promises of environmentally friendly fortunes. Now, former Boulder day trader Cary Kahn, accused by prosecutors of stealing $2.1 million from clients between 2002 and 2009, has pleaded guilty to a scheme in which he mailed investors statements showing they were earning money that turned out to be phony, reports Boulder's Daily Camera. Kahn admits he spent investors' money on alcohol, pot, and sports gambling, especially football and basketball, as well as his living expenses. "I took advantage of other people," Kahn told U.S. Chief District Judge Wiley Daniel. "I dug a hole. Things were getting worse and I was trying to make them better, and things kind of cannonballed." Kahn, 57, who will be sentenced in late June, could receive anywhere from 3 1/2 years to 12 1/2 years in prison and be fined from $7,500 to $125,000. He will have to pay $1.8 million in restitution.

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Once a thief, always a thief.

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