DENVER — Colorado Attorney General John Suthers announced today the Statewide Grand Jury has indicted Jason T. Brooks (DOB: 5/24/1979) on 24 counts of securities fraud and theft and Donald S. Carew (DOB: 3/30/1972) on three counts of securities fraud for their parts in a multistate Ponzi scheme.
“These get-rich-quick schemes are especially insidious during these tough economic times,” Suthers said. “I would encourage Coloradans to be cautious of any investment opportunity that promises unusually high rates of return. If an investment opportunity sounds too good to be true, it probably is.”
According to the indictment, Brooks solicited and accepted more than $10 million from investors in Boulder, Broomfield, Larimer and Weld counties to take part in an electronics resale business. Between June 2005 and February 2008, Brooks told investors he, via Genius, Inc., would use their money to underwrite his business with a Japanese firm to purchase electronics and appliances and resell them at significantly higher prices. Brooks, according to the indictment, used investors money to pay “interest payments” to other investors and for personal expenses, including gambling.
Brooks’ Ponzi scheme, according to the indictment, extended beyond Colorado to victims residing in 15 other states and U.S. territories, including Arizona, New Mexico and the U.S. Virgin Islands.
During the course of the Ponzi scheme, Brooks enlisted the help of others, including Carew, to act as representatives of Genius, Inc., and a second related company, Genius Deals, Inc. Both men are suspected of making false statements to prospective investors about the nature, terms and risks of their investments.
Attorneys from the Office of the Attorney General will prosecute Brooks and Carew in Weld County District Court.