Apr 22, 2010 1:57 PM by Bea Karnes, News First 5
The owners of a Boulder investment firm are accused of running a ponzi scheme that promised investors annual returns of between 20 percent and 500 percent.
Bela A. Geczy of Longmont and Michael Kass are accused of muliple counts of securities fraud and organized crime in a scheme that defrauded 272 investors of $18 million. The two owned Dharma Investment Group. Both are scheduled in court Thursday.
An indictment made public Wednesday alleges Geczy and Kass used investors money to pay off other investors and failed to disclose the risk involved in some of their securities. Kass did not immediately return a message Thursday, while nobody answered the phone at a number listed for Geczy.