Jefferson County man indicted on 11 counts of securities fraud in house-flipping business
A grand jury has indicted a Jefferson County man on 11 counts of securities fraud involving a house-flipping business he owned that allegedly solicited $4.8 million from at least 80 investors.
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A grand jury has indicted a Jefferson County man on 11 counts of securities fraud involving a house-flipping business he owned that allegedly solicited $4.8 million from at least 80 investors.
Mack Jamie Sprouse, who ran Urban Veneer Holdings LLC, was arrested on June 3 and indicted two days later. According to a press release from the Colorado Division of Securities, Sprouse raised investor funds through the issuance of promissory notes that promised to repay the principal of the note and high-interest payments.
The indictment alleged that Sprouse made untrue statements and failed to disclose material facts to investors and engaged in fraudulent business practices. It also alleged that Sprouse falsely led investors to believe their investments would be secured by either Urban Veneer or collateralized by specific real estate assets.
Sprouse is not registered to offer or sell securities in Colorado, authorities said. The Colorado Division of Securities led the investigation while the Colorado Attorney General’s Office is prosecuting the case.
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