Racketeering Alleged In 14-Year-Old Denver Ponzi Scheme; Mark J. Jackson Indicted Under State Law By Local Prosecutor

ponziblotterThink the Feds are the only thing to worry about if you’re in the Ponzi scheme business? Think again.

In yet another prosecution that demonstrates Ponzi schemers have more to fear than federal agencies such as the SEC, the CFTC, the FBI, the Secret Service, the IRS and the Postal Inspection Service, a Colorado man has been indicted by a local prosecutor under state racketeering, securities, theft and forgery laws.

Mark J. Jackson was sued civilly in April by Colorado Securities Commissioner Fred J. Joseph and Colorado Attorney General John W. Suthers. An order prohibiting the destruction of records was entered, and a receiver was appointed. The receiver now is suing Jackson’s father, Ted Jackson, amid allegations that the elder Jackson was a partner in the scheme and was unjustly enriched.

Denver District Attorney Mitchell Morrissey, a local prosecutor, opened a criminal probe, with the assistance of the Colorado Division of Securities. That local and state investigation resulted in the criminal indictment against Mark Jackson.

Mark Jackson, 55, was charged with 59 felony counts, including a single count of violating the Colorado Organized Crime Control Act and, as part of the racketeering scheme, 11 counts of securities fraud, 17 counts of theft and 30 counts of forgery.

“[B]eginning in 1995 Jackson portrayed himself as a successful day trader and took money from investors with promises of returns from 12 to 36 percent,” prosecutors said. “[I]nstead of investing the money, Jackson used it to pay other investors and also used investor money for his personal benefit.”

At the same time, prosecutors said, “Jackson prepared phony profit and loss statements and other documents with false statements.”

Victims sustained losses “estimated to be in the millions of dollars,” prosecutors said. Court documents suggest the alleged scheme involves more than $41 million.

Jackson is expected to surrender this week. Morrissey’s Economic Crime Unit is spearheading the probe.

Individual investors also are suing Jackson.

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