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 4 of 6)

modularhousing Oct 15th 2010 10:38PM

Too bad about the loss for everybody - but, what makes these two guys think they can jump the line. Sorry guys, so Mueller "promised" to keep your $$s in "trust" - who you gonna trust and where is it written that your investment takes priority? Get in line with the rest of 'em. 5 cents on the dollar sounds like a good bet right now. Like others, Elway and his partner bought into the perception that the Mercedes and the big house equal character.
Reminds me of a scam where a guy ran a scheme out of his in-law's home - what is called the "Elvis Presley" home on the Pinehurst golf course. When visitors asked about the old couple who owned the house he told them they were his caretakers.

grapost Oct 15th 2010 10:48PM

I still don't get it. Why are people who already multi-millionaires, who are SET FOR LIFE, still trying get RICHER by putting money into NON-GOVERNMENT INSURED INVESTMENTS! It's total GREED! So you only get 3 percent interest on your $15 Million. It's still comes to $450,000 a year! Jeez, how much money does on ACTUALLY NEED to live comfortably. These people are egomaniacs.trying to be Kings of the Money Hill. They need to get a FRICKING LIFE!

JOHN DIXON Oct 15th 2010 10:50PM

It is really something to read how many hateful people there are posting on this subject. Just because a person made a large sum of money playing football is no reason to rejoice in their being scammed for a huge amount of money. Is it because you are envious he made a large amount while he was getting his brains beat in by 300 lb lineman? Or, is it the fact he had 15 million to lose in the first place. Is he greedy for investing "HIS OWN" money? If it were you and you lost 15,000 or 1,500 to put it in proportion with the difference in his and the normal persons income, would you be jumping up and down because you were so happy you lost your hard earned money? It is like wishing harm to another individual because they made it big in their chosen profession. Why cheer for another person's lose? I just don't see the joy in wishing someone else bad luck. I do wish you all good luck in your investing or saving, or just in keeping you job so you can support yout family in these really tough times. The fact he owns a Toyota dealership should have nothing to do with the fact he was scammed either.

John J. Bluvas Oct 16th 2010 9:00AM

Ponzi schemes work on one thing.GREED.I am so surprised that those stupid Jocks are so easy to rip off.I have no pity for this man as he did all this to himself.

Christ I see so many fools fall for this crap.Yet the simplest of minds tell you "If it sounds to good to be true it has to be a bad thing".But again GREED over rides common sense.

John I feel for your family and kids but you are stupid man.

jbubya Oct 16th 2010 6:06AM

What is different between what this crook did, and what everyone that got bailed out last year. They all ran a ponzi scheme. Some with real estate others with future sales.

I guess if your not connected they call it crime. If your in the old money click they call it a crisis.

Charlie Oct 16th 2010 7:45AM

Remember people, It's very hard to cheat an honest man.

Tim Oct 16th 2010 8:26AM

Couldn't have happened to a nicer guy, Elway is a arrogant jerk! Now he's an arrogant stupid jerk and very deserving of loosing his precious money. He even looks stupid, just because the guy could throw a football doesn't make him brilliant like he like to think he is. NOT!

Bnimblenan Oct 16th 2010 8:42AM

Fifteen million divided by thirty years is five-hundred thousand dollars a year, plus his NFL retirement, other investments, indorsements etc. Obviously the cash can't buy Big John any happiness, but he might invest a few farthings in a copy of King Midas.

gary Oct 16th 2010 9:11AM

john 15 million wasn't enough? you wanted more?

WILL Oct 16th 2010 10:25AM

Why should elway go to the front of the line ? wait your turn john

mooch Oct 16th 2010 10:34AM

John, big bad John. You big farting oat meal baby. Your riches were made for you. Now you are showing your true intelligence. How foolish you are. Somebody knew how to spot a big rich baby dummy. I hope you greased it up real good because somebody got 15 million bucks worth of your booty. You were a very good ball thrower but turns out a lousy businessman. I would investigate your partners as well. This could have been a big set up. I feel sorry for you John except for the part about you wanting your case put ahead of the other victims. Just another cry baby from Planet Greed crying for his money, money, money. Shame, shame, shame. You big, dumb, blue eyed DUMMY!

mhtnprtg Oct 16th 2010 11:44AM

no comments about the folks involved. I guess they will alway be money grubbers like larry summers.

rachel corrie

American Gangster Oct 16th 2010 11:49AM

So let me get this straight....A man is blessed with god given talent which enables him to make it all the way to the NFL and become rich. Some scumbag comes along and steals his money and it's HIS fault??? Jim and Julie I agree with the group, you're BOTH morons...

Plainer Oct 16th 2010 12:21PM

Unbelievable for a smart guy as John Elway. I'm wary of any investment opportunities as I had a similar experience on a much smaller, smaller, scale than John Elway's. I did it because of a friend who vouched for the guy I dealt with. Keep friendship and money separate; you're better off. It appears John and his partners could have fallen prey under similar circumstances as I had as to why I invested in the first place.

Grant06 Oct 16th 2010 12:49PM

Why in the world would someone as filthy rich as Elway obviously is, want to try and make more in a get rich quick scheme? He got what he deserves as far as I'm concerned. How slimey.

un4getablEwe Oct 16th 2010 1:02PM

It always seems like those who have so much money to throw around, I'm talking Millions, 000,000,000. sometimes don't have a brain! Who can live long enough to spend that kind of money? You CAN'T TAKE IT WITH YOU so, do something worthwhile with it!!!!!!! Get a LIFE!!! There are people out there who have lost homes, jobs, families and these guys are trying to make more $000,000,000. Help your neighbor, oh I forgot their neighbors probably have this kind of money to throw around too. Find someone who can use help!!!!! I'm not talking about those wo always have their hands out, I'm talking about a real need.