Littleton man indicted for $1 million securities fraud

DENVER (June 22, 2015) –  On June 18, a Colorado Grand Jury indicted Littleton resident Daniel Sullivan for securities fraud that he allegedly committed over a six year period, and which affected upwards of 46 investors. Sullivan, who was the owner and operator of various businesses including DIG Energy, LLC, COPS, Inc., and COPS, LLC, is suspected of providing misinformation, omitting important information, and failing to disclose the actual use of funds when he solicited approximately $1 million.

According to the indictment, Sullivan allegedly began raising funds in November 2009 to invest in shares of “start-up” companies that he represented were ready to make initial public offerings. These enterprises were purportedly all involved in either green energy, real estate, or the waste-to-fuel business, and many were international. Sullivan told investors that he could promise high rates of return with little to no risk involved. In reality, the shares allegedly carried a great degree of risk. In addition the indictment alleges that investors -- many of whom were encouraged to hand over retirement savings -- were never informed that Sullivan had previously had many financial troubles due to a failed business and a bankruptcy filing in 2005, and a civil suit judgment against him in 2013 filed by the Colorado Department of Revenue.
 
Adding to the list of alleged fraudulent omissions and misleading statements is the allegation that only a small portion – less than $300,000 – of the funds Sullivan raised were actually invested in the represented enterprises. Instead, Sullivan purportedly used a large portion for business and personal expenses, and used another portion to repay earlier investors. The indictment for securities fraud, a Class-3 felony, follows an investigation by the Colorado Division of Securities and multiple charges brought by the Colorado Attorney General’s office.
 
Securities Commissioner Gerald Rome commented of the case, “It is always hard to see investors lose finances to claims of ‘no-risk, guaranteed return’ investments. The reality is, that as tempting as that sounds, investments that don’t involve risk and can promise returns simply do not exist. Particularly when it comes to funds saved for retirement, that are the most difficult to recoup when lost, it’s best to follow the old adage ‘if it sounds too good to be true, it probably is.” Please note: The charges contained in the indictment are allegations, and the defendants are presumed innocent until and unless found guilty.
 
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Media Contact:
Jillian Sarmo
Division of Securities
p: 303-894-2878