JEFFERSON COUNTY, Colo. — A Colorado man was indicted on 11 counts of securities fraud related to his house-flipping business, according to the Colorado Department of Regulatory Agencies.
Mack Jamie Sprouse is accused of soliciting approximately $4.8 million from at least 80 investors. He reportedly issued promissory notes to investors, pledging to repay the initial money lent to his business with interest.
Investors were led to believe their investments in Sprouse's house-flipping business, Urban Veneer Holdings LLC, would be secured or real estate assets would be provided as collateral, according to the indictment. However, the indictment states this was not true. The Colorado Division of Securities revealed that Sprouse was not registered to offer or sell securities in Colorado and did not have enough money to repay investors.
The Colorado Division of Securities alleges Sprouse committed deceitful business practices by failing to accurately disclose how he would use investor funds or how relied on other funding sources.
Anyone who invested in Sprouse's company is asked to contact the Colorado Division of Securities is asked to call 303-894-2320 or e-mail dora_SecuritiesWebsite@state.co.us. You can also call the Colorado Attorney General's Office at 720-508-6000.
The Colorado Attorney General's Criminal Justice/Financial Fraud Unit is prosecuting the case against Sprouse.
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