Fort Collins Man Arrested On Suspicion Of Securities Fraud

DENVER – Colorado Attorney General John W. Suthers and Colorado Securities Commissioner Fred Joseph today announced the indictment of Gene Robert Little in connection with an alleged Ponzi scheme involving millions of dollars in investments from Northern Coloradans. The sixty-two year old Little, a Fort Collins resident, was arrested on 42 counts of securities fraud and one count of theft. The indictment was handed down by a statewide grand jury. If convicted on all counts, Little would face a minimum sentence of 172 years in prison, and millions of dollars in fines and restitution.

The indictment alleges that Little, through his company Managed Cash Flow, solicited investments from more than 300 Coloradans from 2002 to 2006 – totaling over $11 million – promising investors returns on their money of 15 to 20 percent, with payments in the form of monthly interest accrual.

It is alleged that Little stopped forwarding collected monies to Nationwide for investment around July of 2005. Over the next fourteen months, Little allegedly used nearly all of the funds he collected from approximately 40 new investors to pay the promised returns owed to the 260 customers he had previously enlisted. Forty-one of Little’s investors never regained their principal investments, totaling more than $2.3 million.

"I strongly encourage consumers to question a high rate of return promised for their investment dollars," said Commissioner Joseph.  "By contacting our office, investors may save themselves a lot of misery, but more importantly their hard-earned money."

The case has been filed in Larimer County District Court and will be prosecuted by the Securities Fraud Unit of the Attorney General’s Office. Little posted a fifty-thousand dollar bond on October 23. Little’s initial court appearance is scheduled for October 24 at 1:30 P.M. in Larimer County courtroom 5B. It should be noted, any criminal complaint is merely an accusation and the defendant is presumed innocent until found guilty.



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