Injunction granted and Receiver appointed in Division of Securities case against Joseph David Ryan, Madyson Investments
DENVER (Nov. 16, 2017) — Denver District Court Judge Eric Eliff has granted an order of preliminary injunction against Joseph David Ryan and his companies, collectively known as “Madyson Investments,” which include Madyson Capital Management LLC, Madyson Equity Group LP, Madyson Holdings Inc., Madyson Realty Fund I LLLP, and Madyson Realty Partners LLC, all located in Colorado Springs, Colorado. Judge Eliff also appointed Receiver John C. Smiley to immediately take over management of all assets controlled by the Defendants. A complaint for injunction and other relief filed by Securities Commissioner Gerald Rome alleged that the Defendants committed securities fraud by misleading investors and utilizing investor money to fund an extravagant personal lifestyle.
According to allegations by the Division of Securities, part of the Department of Regulatory Agencies, Defendant Ryan, the sole control person of Madyson Investments, offered and sold securities to at least 78 Colorado residents and over $13 million in investments. Ryan promoted the investments as being used to acquire residential and commercial properties to own and operate as rental properties. Many investors then redirected money from retirement accounts into Madyson Investments, allegedly based on promises of low risk and guaranteed profits.
The Division alleges that, rather than utilizing the investors’ funds as stated, the Defendants purchased a personal residence for Mr. Ryan, as well as residences occupied by Ryan’s assistant and his wife, neither of whom paid rent. The complaint also lists purchases of luxury vehicles and $10,000 worth of jewelry and other luxury goods.
Ryan has been ordered to turn over information on all real estate property, accounts, books, records, and information of any kind related to the Estate of Madyson Investments. Smiley will have control over the Estate pending further court proceedings. As part of the granted preliminary injunction, Defendants are prohibited from engaging in any securities-related business in Colorado, destroying any records related to the Madyson Investments business, and all assets are frozen.
The Division is represented by attorneys from the Colorado Attorney General’s Office.