DENVER – Two Colorado men have been indicted by a state grand jury on securities fraud charges after they allegedly schemed to defraud dozens of Coloradans out of nearly $11 million in investments.
The charges against Joseph David Ryan, 58, and Dennis Farrah, 66, come on the heels of a preliminary injunction granted in November that barred him from continuing to operate his investments, collectively known as Madyson Investments .
According to the indictment, Ryan had sold securities to at least 79 Coloradans for approximately $11 million. But instead of buying stocks or properties with the money as he’d allegedly promised the investors, he instead bought himself a home and paid rent on two others and also bought luxury cars and jewelry, the indictment alleges.
Ryan faces 10 counts of securities fraud.
Farrah, who runs the Farrah Tax Advisory and Senior Planning Group, managed some of the people’s money and is accused of convincing his clients to cash out with him and instead invest their money with Ryan’s Madyson Investments. According to the indictment, Ryan allegedly promised those people that the investments were low risk and that they would see return profits of between six and 10 percent.
Farrah faces one count of securities fraud in the case. He is scheduled to appear at a hearing in El Paso County on the charge on July 12. Ryan’s first appearance hasn’t been set at this time.
Madyson Investments was transferred over to an appointed receiver to manage the remaining assets in November.