Colorado

Jun 2, 2010 4:15 PM by Greg Boyce

State Grand Jury indicts three

A Statewide Grand Jury has indicted three men suspected of running a $5.7 million investment-fraud scheme. Phillip R. Trujillo, David M. Piatt and Timothy B. Burk are suspected of defrauding 70 investors with promises that their investments would be free from risk and would generate generous returns. The trio also is suspected of failing to fully inform their customers of exactly how their money would be invested and used.

"Since the collapse of the financial markets, consumers have been looking for quick ways to rebuild their retirement funds and investment portfolios. Scammers prey on these consumers' wishes to be made whole again," Said Colorado Attorney General John Suthers. "When consumers are presented with ‘investment opportunities' promising little or no risk and big rewards, they should be aware that there are no sure things in the investment world."

According to the indictment, Trujillo did not disclose to their investors what their investments were actually being used to fund unsecured promissory notes and to then help pay legal fees related to those notes once they were in default. Trujillo also is suspected of failing to disclose commissions paid and personal loans he issued to himself using investors' funds. Piatt and Burk, who ran investment seminars and solicited investments in Trujillo's funds, also are suspected of failing to disclose how consumers' funds would be used.

Trujillo resides in Loveland. Piatt and Burk live in Glendale.

 

 

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