CENTENNIAL, Colo. - Greenwood Village police have arrested two men who they say bilked an investor out $848,000.
Chisan Chong, of Aurora, and Steve Linnenkamp, of Castle Rock, were executives at a Denver Tech Center company called Direction Labs.
According to court documents obtained by 7NEWS, Chong claimed to have software that would "take all the guesswork" out of making trades on domestic and foreign exchanges.
He allegedly claimed the software was "bulletproof" and that investors would "never lose."
Chong hired Steven Linnenkamp, and two other men, to assist him in marketing the software, and to seek investors who would provide funds for trading on the FOREX.
In 2011, Linnenkamp approached David McCarthy, of Englewood, about investing in the company. Linnenkamp had previous worked for McCarthy as his IT manager.
McCarthy told investigators that neither Chong, nor Linnenkamp ever mentioned risk, but rather that the investment would be a "no lose" scenario.
McCarthy said he was asked to invest $1 million in Direction Labs, but opted to invest half that much.
A few months later, he received an urgent email from Linnenkamp seeking an additional and "immediate" $300,000 investment that would be traded on the FOREX market, and that Chong would take the funds with him to England where he would "personally" make those trades.
McCarthy was told that his investment would yield $1 million. It did not.
Investigators found Chong had transferred much of that money into his own account, and spent it on personal items, including a car.
There was no answer at Chong's house and the phone listed to his address is no longer in service.
Investigators say they found no evidence that the "Second Sight" software, if it even exists, ever worked.
They say Linnenkamp knowlingly misled McCarthy by entering false trading information on the Direction Labs website.
Chong has been charged with Theft and multiple counts of Securities Fraud. He posted a $75,000 bond.
Linnenkamp has been charged with Securities Fraud, Computer Crime, Accessory to Securities Fraud and Accessory to Theft. He posted a $10,000 bond.