Posted: Jan 13, 2011 5:40 AM by Bea Karnes
Updated: Jan 13, 2011 5:48 AM
LONGMONT, Colo. (AP) - Two Boulder County men have pleaded guilty to involvement in a scheme that authorities say cost investors more than $18 million.
The Longmont Times-Call reports that Bela Geczy of Longmont and Michael Kass of Boulder pleaded guilty Wednesday to two counts each of securities fraud. The two, who owned Boulder-based Dharma Investment Group, could face probation or up to 16 years in prison when sentenced April 5.
The two men were arrested in April on suspicion of nine counts of securities fraud, conspiracy to commit securities fraud and one count of organized crime. They were accused of managing an investment scheme from 2005 to 2008 involving 272 investors that used money from later investors to pay earlier investors and made guaranteed returns without the means to pay.