Hall of famer John Elway $15 million Poorer from Ponzi Scheme

by David Kiley (RSS feed)
Oct 15th 2010 at 11:01AM

Hall of Fame Denver Broncos quarterback John Elway is $15 million poorer.

Elway, who has diversified business holdings including a large Toyota auto dealership invested $15 million last March with Colorado hedge-fund manager Sean Mueller who was charged this week in an alleged Ponzi scheme.

Mueller, 42, turned himself in this week to authorities a day after being charged by prosecutors with racketeering, securities fraud and theft in a scheme said to have bilked tens of millions of dollars out of investors.

Elway and business partner Mitchell Pierce said in a motion filed Tuesday they met with Mueller in Denver on Feb. 22 to discuss an investment with his company, Mueller Capital Management. In March, the Hall of Famer and and Pierce transferred funds to Mueller to be held in escrow until they agreed on where to invest the money, the men said in the filing. On March 30, Mueller advised them he was still setting up managed accounts in their names, they said.

About 65 people invested roughly $71 million since 2000 with Mueller Capital Management, according to an affidavit filed by the Denver district attorney's office. Mueller had less than $9.5million in cash and investments in April and liabilities to investors of $45million, said Colorado Division of Securities investigator Richard Rogers in the affidavit.

In their filing, Elway and Pierce ask the court to put their claim ahead of the others so that they may recapture their investment first. They said Mueller agreed to put their money in a trust and not mingle it with other investors' funds. That, of course, did not happen.

Tags: John Elway, ponzi scheme, Sean Mueller, Toyota

Filed under: Sports, Crimes and Misdemeanors

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Reader Comments (Page 1 of 6)

trmnatr2 Oct 15th 2010 11:05AM

To all of you who think this couldnt happen to you,it can.Always,always always think to yourself,what does this guy have to gain by selling this to me and if it sounds too good to be true,,IT IS.

tyrebitre Oct 16th 2010 12:24AM

"To all of you who think this couldnt happen to you,it can."---------------------

No, actually it CAN'T happen to me: I don't have the 15 million, you see.

trmnatr2 Oct 17th 2010 10:04AM

You can be scammed with $15 just aswell as 15 million.As for what is a scam just read PEGGY BAKER AND LISA WILLIAMS POST

bearpawmarketing Oct 15th 2010 11:07AM

Sounds like this guy was doing the same scam the government runs on
everybody. i think if I were his attorney I'd go with the defense, if
you prosecute me then you have to prosecute congress.

Bob Oct 15th 2010 10:59PM

Good one! So true. Sad though, isn't it?

WminPhoenix Oct 15th 2010 11:13AM

The old saying is, "if it sounds to good to be true, it probably is a fraud" My question to Elway and Pierce is, what makes you think that you should be paid first? You got scammed just like everyone else, so stand in line like everyone else, Johnnie.
In my 40 years of investing in the stock market, I have found only one good investement advisior - me. Most of the people who claim be a "grand wizard" of the stock market are not worth a second look.
John FYI, I would never take the chance of investing 15 Million in a hedge fund - much too risky.

kim Oct 16th 2010 1:47PM

why, don't you know??? it just so happens elway is the almighty holyier than thou, world revolves around him, the chosen one? mr horse face himself MUST be put first.
his ex is why he isn't like most of all the other retired pros, broke

neugentk Oct 17th 2010 9:58PM

They think they will be paid first because the rich usually come first in recovery. The rich have the attorneys to work on the case, seize property, freeze assets. If it is a regular guy you are s@@t out of luck.
A lot of people do not know this. Just follow the case and see what happens. They may not get all their money back, but a good chunk of it will go to them....

JEFF Oct 15th 2010 12:05PM

WHAT A DUMMY, HE COULD HAVE PUT 15 MILLION INTO ONLY 100, HUNDRED OUNCE BARS OF GOLD, PUT THEM INTO A SMALL SAFE BOX AT HIS FAV BANK AND MADE 30 PERCENT ON IT IN THE LAST MONTH, SOON TO DOUBLE IN VALUE WITHOUT DOUBT. EVERYONE IS TO STUPID TO BUY PHYSICAL GOLD AND SILVER AND WHEN THE MUSIC STOPS, THEY ARE NOT GOING TO GET A CHAIR AT THE TABLE. PAPER GOLD IS FOOLS GOLD.....

trmnatr2 Oct 15th 2010 10:35PM

EXCEPT GOLD DIDNT GO UP 30%, DUMMY ,PLUS YOU HAVE TO PAY THE BROKERS FEE (12%)

mdardzinski Oct 16th 2010 8:50PM

Hindsight is 20/20. Where should we put our money now? Gold? Not me.

julie Oct 15th 2010 12:22PM

MUST HAVE GOT HIT IN THE HEAD ONE TO MANY TIMES. GREED PLAIN AND SIMPLE TO SOME MILLIONS IS NOT ENOUGH

Stan Oct 15th 2010 11:51PM

Yes Julie...spoken like a true shmuck who doesnt know a thing about investing.
If it wasnt for successful people investing and getting rich or investing and losing money....us losers who dont do ANYTHING wouldnt have someone to kick around to make us feel better about our pitiful lives...right?

AOKMichelleO! Oct 17th 2010 10:53PM

Maybe not so much greed as attempting to responsibly take care of his hard earned money. And the way it goes in investing is to use money to make more money. Nothing wrong there, just that he chose a scammer to help him. I just wonder why he didn't test the guy out w/ half a million or even one million before giving him just a huge amount. But I imagine he felt very confident about his stokebroker's advice.

hey dude7 Oct 15th 2010 12:22PM

YESS YES I KNOW WHAT HE SHOULD HAVE DONE I HAVE 50 YEARS EXPERIENCE, HE SHOULD HAVE INVESTED ON BLAH BLAH......what is this the 3rd grade?
The problem is right here, all are experts, all know exactly what to do ....bunch of schmucks..!

Nat Harwell Oct 15th 2010 12:45PM

the point is well taken by JULIE - it's all about greed. My goodness, how much is enough? My wife and I have taught school for 30 years and just would really like to have a little room to relax in, financially. It's beyond comprehension that: a) we pay dumb athletes (or smart ones) millions of dollars, and; b) they LOSE it.