Hall of famer John Elway $15 million Poorer from Ponzi Scheme
Elway, who has diversified business holdings including a large Toyota auto dealership invested $15 million last March with Colorado hedge-fund manager Sean Mueller who was charged this week in an alleged Ponzi scheme.
Mueller, 42, turned himself in this week to authorities a day after being charged by prosecutors with racketeering, securities fraud and theft in a scheme said to have bilked tens of millions of dollars out of investors.
Elway and business partner Mitchell Pierce said in a motion filed Tuesday they met with Mueller in Denver on Feb. 22 to discuss an investment with his company, Mueller Capital Management. In March, the Hall of Famer and and Pierce transferred funds to Mueller to be held in escrow until they agreed on where to invest the money, the men said in the filing. On March 30, Mueller advised them he was still setting up managed accounts in their names, they said.
About 65 people invested roughly $71 million since 2000 with Mueller Capital Management, according to an affidavit filed by the Denver district attorney's office. Mueller had less than $9.5million in cash and investments in April and liabilities to investors of $45million, said Colorado Division of Securities investigator Richard Rogers in the affidavit.
In their filing, Elway and Pierce ask the court to put their claim ahead of the others so that they may recapture their investment first. They said Mueller agreed to put their money in a trust and not mingle it with other investors' funds. That, of course, did not happen.
Reader Comments (Page 1 of 4)
trmnatr2 Oct 15th 2010 11:05AM
To all of you who think this couldnt happen to you,it can.Always,always always think to yourself,what does this guy have to gain by selling this to me and if it sounds too good to be true,,IT IS.
tyrebitre Oct 16th 2010 12:24AM
"To all of you who think this couldnt happen to you,it can."---------------------
No, actually it CAN'T happen to me: I don't have the 15 million, you see.
bearpawmarketing Oct 15th 2010 11:07AM
Sounds like this guy was doing the same scam the government runs on
everybody. i think if I were his attorney I'd go with the defense, if
you prosecute me then you have to prosecute congress.
Bob Oct 15th 2010 10:59PM
Good one! So true. Sad though, isn't it?
WminPhoenix Oct 15th 2010 11:13AM
The old saying is, "if it sounds to good to be true, it probably is a fraud" My question to Elway and Pierce is, what makes you think that you should be paid first? You got scammed just like everyone else, so stand in line like everyone else, Johnnie.
In my 40 years of investing in the stock market, I have found only one good investement advisior - me. Most of the people who claim be a "grand wizard" of the stock market are not worth a second look.
John FYI, I would never take the chance of investing 15 Million in a hedge fund - much too risky.
kim Oct 16th 2010 1:47PM
why, don't you know??? it just so happens elway is the almighty holyier than thou, world revolves around him, the chosen one? mr horse face himself MUST be put first.
his ex is why he isn't like most of all the other retired pros, broke
JEFF Oct 15th 2010 12:05PM
WHAT A DUMMY, HE COULD HAVE PUT 15 MILLION INTO ONLY 100, HUNDRED OUNCE BARS OF GOLD, PUT THEM INTO A SMALL SAFE BOX AT HIS FAV BANK AND MADE 30 PERCENT ON IT IN THE LAST MONTH, SOON TO DOUBLE IN VALUE WITHOUT DOUBT. EVERYONE IS TO STUPID TO BUY PHYSICAL GOLD AND SILVER AND WHEN THE MUSIC STOPS, THEY ARE NOT GOING TO GET A CHAIR AT THE TABLE. PAPER GOLD IS FOOLS GOLD.....
trmnatr2 Oct 15th 2010 10:35PM
EXCEPT GOLD DIDNT GO UP 30%, DUMMY ,PLUS YOU HAVE TO PAY THE BROKERS FEE (12%)
julie Oct 15th 2010 12:22PM
MUST HAVE GOT HIT IN THE HEAD ONE TO MANY TIMES. GREED PLAIN AND SIMPLE TO SOME MILLIONS IS NOT ENOUGH
Stan Oct 15th 2010 11:51PM
Yes Julie...spoken like a true shmuck who doesnt know a thing about investing.
If it wasnt for successful people investing and getting rich or investing and losing money....us losers who dont do ANYTHING wouldnt have someone to kick around to make us feel better about our pitiful lives...right?
hey dude7 Oct 15th 2010 12:22PM
YESS YES I KNOW WHAT HE SHOULD HAVE DONE I HAVE 50 YEARS EXPERIENCE, HE SHOULD HAVE INVESTED ON BLAH BLAH......what is this the 3rd grade?
The problem is right here, all are experts, all know exactly what to do ....bunch of schmucks..!
Nat Harwell Oct 15th 2010 12:45PM
the point is well taken by JULIE - it's all about greed. My goodness, how much is enough? My wife and I have taught school for 30 years and just would really like to have a little room to relax in, financially. It's beyond comprehension that: a) we pay dumb athletes (or smart ones) millions of dollars, and; b) they LOSE it.
benji Oct 15th 2010 12:42PM
All you do is blame the victim? what about the disgusting corruption in America these days? nothing is ever said about that, your love of country is missplaced, big time, it borders on fanatic.
benji Oct 15th 2010 12:43PM
what about the crook who did this? nothing is ever mentioned about that. its always the victims fault. typical
Jim Oct 15th 2010 3:03PM
Did you forget to read the 3rd paragraph?
Seth Oct 15th 2010 12:48PM
Payback for the 1999 championship against the Jets. " this one's for John "! Whew! I guess it was. J E T S JETS JETS JETS!!!!!!!!!!!!!!!
sonnype Oct 15th 2010 12:51PM
These people who swindle others should have their hands and feet and tounge cut off
lee Oct 15th 2010 12:53PM
he wants his claim "put in front of others".. talk about ego! let him wait like the rest of them!
Kelly Oct 15th 2010 1:03PM
John and his partner were duped. Don't blame the victims. Unfortunately it is the world we now are forced to live in. What ever happened to honesty and integrity. Really a shame.
Jim Oct 15th 2010 3:00PM
The driving force here was GREED on the part of Elway. He wanted more, more and more regardless of the millions he already had. If he had a brain he'd have found out EXACTLY how secure his investment was and the history of the scammer involved. Trying toplace himself first in line to be paid is typical of the 'sport heros' that gives them a feeling that they are somehow above it all when it comes to risk and its consequences. He had better 'man-up' for once in his charmed life and deal with it like a man.