Legendary Denver Broncos quarterback, John Elway was recently named one of 65 investors who were victims of an alleged Ponzi scheme run by former hedge-fund manager Sean Mueller of Cherry Hills Village.
The Denver district attorney charged Mueller on Tuesday with violations in accordance with the Colorado Organized Crime Control Act, securities fraud and two counts of theft.
According to the authorities who investigated the crime, it was a “classic Ponzi scheme” in which new investors were rotated in to pay off the original investors. In total, investors’ losses were in the “tens of millions of dollars.”
Mueller belonged to a number of extravagant and well-respected country clubs in the Denver and Phoenix areas, and it’s believed that many of his clients were lured in through those locations. Authorities estimate that about 65 people invested nearly $71 million in the scheme since 2000.
The funds were reportedly sent through Mueller Capital Management, a Mueller-established organization that served little purpose other than a front for his alleged illegal activities. As of this past April, the company had less than $9.5 million in cash and investments and $45 million in liabilities to investors.
Mueller was taken into custody on April 22 after he sent apologetic messages to investors and threatened to jump off an RTD parking garage in Greenwood Village.
The Denver district attorney did not disclose the amount that Elway had invested.