$5.7 Million Investment Fraud Gets Fort Collins Man 12 Years in Prison

$5.7 Million Investment Fraud Gets Fort Collins Man 12 Years in Prison

Fort Collins, CO – Phillip Trujillo, 62, of Fort Collins, was sentenced by a Larimer County Judge to 12 years in prison for perpetrating an investment fraud of $5.7 million on 70 investors.

Phillip Trujillo fraud

Phillip Trujillo

In January, a Larimer County jury had convicted Trujillo on five counts of securities fraud and one count of theft.  During the sentencing on Wednesday Trujillo requested Eighth Judicial District Judge Dave Williams that he be allowed to remain free pending an appeal, but his request was denied and he was taken into custody.

Trujillo and co-defendants David M Piatt and Timothy B.  Burk were indicted in June 2010 for cheating 70 investors through companies they controlled.  They promised investors that their monies would be placed in risk-free investments and earn lucrative returns, even though, actually, some of those investments were already in default, as alleged by the indictment.  Investors were also unaware that the trio had invested the funds in unsecured promissory notes, and later, when these went bad, used their money to pay for the legal charges related to the defaults, according to the indictment.

Many of the investors said they lost their life savings in the fraud, while a few obtained second mortgages to enhance their investments.

In March 2011, Piatt and Burk received one-year deferred sentences after they pled guilty to securities fraud and a class-three felony, and agreed to pay restitution of about $1.2 million, as per Colorado Attorney General John Suthers.

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