Chapman & Associates Investigating Alleged Colorado Ponzi Scheme by Jason Brooks, Donald Carew
The investment fraud law firm of Chapman & Associates is investigating the alleged Ponzi scheme perpetrated by Jason T. Brooks and Donald S. Carew in Colorado and elsewhere.
Brooks and Carew have been indicted by the Colorado Attorney General on 24 counts of securities fraud and theft for their parts in a multistate Ponzi scheme.
Investigation by the Chapman & Associates attorneys established that Brooks raised more than $10 million from investors located in Boulder, Broomfield, Larimer and Weld counties in Colorado, as well as other states, between June, 2005 and February, 2008.
The Chapman & Associates investigation showed that Brooks and Carew told their victims the investments would be used to finance an electronics resale business. Brooks represented to investors his company, Genius, Inc., would use their money to purchase electronics and appliances from Japanese firm. The electronics were going to be resold in the United States at significantly higher prices, according to Brooks.
However, the Chapman & Associates attorneys determined that Brooks may have used investors money to finance his life style, which included gambling, and to make "profit" payments to earlier investors, in typical Ponzi scheme fashion.
The Chapman & Associates attorneys learned that, to perpetrate his scheme, Brooks enlisted the help of several sales agents, including Carew as well as others. Chapman & Associates' investigation indicates some of the salesmen were financial professionals, affiliated with financial organizations.
"Financial organizations have a duty to protect their customers and prevent unregistered investments from being sold to the public," John Chapman explained. "On behalf of investors in Brooks' alleged Ponzi scheme, we will hold liable those who assisted him in perpetrating his scheme," Chapman said.
The Chapman & Associates attorneys are preparing to take legal action on behalf of Brooks / Carew investors who lost their savings, against certain financial institutions that may have assisted them in perpetrating the alleged fraudulent scheme.
Investors who lost money in the Brooks / Carew scheme are encouraged to contact the law offices of John S. Chapman & Associates for a free evaluation of their claims. Please call 216-241-8172 or 877-410-8172 and ask for John Chapman or Alin Rosca. For more information about the securities law firm of Chapman & Associates, go to www.johnschapman.com.