Jefferson County House-Flipper Faces Criminal Charges in $4.8M Investment Scheme Targeting Colorado Families
A Jefferson County businessman is facing serious criminal charges after allegedly defrauding dozens of Colorado investors through a house-flipping operation that prosecutors say collected millions in illegal investments. Mack Jamie Sprouse, owner of Urban Veneer Holdings LLC, was arrested on June 3 following an 11-count indictment for securities fraud involving approximately $4.8 million collected from at least 80 investors.
The case highlights growing concerns about investment fraud targeting Colorado residents amid the state's competitive real estate market. Local families seeking to grow their retirement savings through real estate investments are particularly vulnerable to such schemes.
Pattern of Deception Alleged
According to the Colorado Division of Securities, Sprouse operated his scheme by issuing promissory notes that guaranteed:
- Return of principal investment
- High-interest payments to investors
- Security backed by Urban Veneer assets
- Collateral in specific real estate properties
- Return of principal investment
- High-interest payments to investors
- Security backed by Urban Veneer assets
- Collateral in specific real estate properties
Investigators allege these promises were built on deception. The indictment claims Sprouse made false statements to investors and failed to disclose critical information while operating without proper securities registration in Colorado.
Warning Signs for Colorado Investors
This case serves as a stark reminder for Colorado families to exercise caution with real estate investment opportunities. The Colorado Division of Securities, which led the investigation, emphasizes that legitimate securities dealers must be properly registered with the state.
"This case demonstrates our commitment to protecting Colorado investors from fraudulent schemes that prey on their dreams of building wealth through real estate," the Division stated in their press release.
The Colorado Attorney General's Office is now prosecuting the case, highlighting the state's aggressive stance on investment fraud targeting local communities. Colorado investors are encouraged to verify securities registration status through the Division of Securities before committing funds to any investment opportunity.
Impact on Local Communities
With Colorado's real estate market remaining highly active, particularly in the Denver metro area, financial experts warn that similar investment schemes may become more common. Local families are advised to be especially wary of high-yield investment promises in the real estate sector, no matter how convincing they may appear.
The case continues to develop as prosecutors build their case against Sprouse, who faces significant prison time if convicted. Colorado residents who believe they may have been victims of similar investment schemes are urged to contact the Colorado Division of Securities.
This article contains AI-generated content and reflects opinion only. Readers are encouraged to verify all information independently before drawing conclusions or making decisions.
