DENVER — A Lone Tree man has pleaded guilty in financial crime cases in which he defrauded investors and will be expected to pay more than $18 million in restitution, the Denver District Attorney's Office said on Tuesday.
Tyler Tysdal, 50, pleaded guilty to securities fraud in two cases brought by the district attorney's Economic Crimes Unit. His sentencing is scheduled for Jan. 21, 2022, and he faces concurrent prison sentences of up to eight years.
He's also expected to pay at least $2 million in up-front restitution as part of his plea agreement, the DA's Office said.
"Tyler Tysdal conned people by making promises of exorbitant profits with little risk and by withholding the truth about his business dealings and operations," said Denver District Attorney Beth McCann in a news release.
> Video above: Common internet scams to look out for.
Tysdal ran Cobalt Sports Capital LLC, which made short-term, high-interest loans to athletes and entertainers between January 2014 and October 2016, the DA's Office said. He and his business partner, Grant M. Carter of Johns Creek, Georgia, defrauded investors by making false and misleading statements and by omitting key facts about his business operations.
Cobalt obtained more than $46 million from 77 investors, the DA's Office said.
In 2019, a grand jury found sufficient evidence to charge Tysdal with violating Colorado's Organized Crime Control Act, and a case was opened in December of that year, the DA's Office said.
Tysdal agreed as part of his plea agreement in the case to pay back more than $18 million in restitution.
He was also charged in 2020 in a separate case in which he claimed he was seeking investment capital to fund a national expansion of a wine distributor, Curious Cork Imports LLC. He claimed that Curious Corks was an importer and brand builder of fine European wines valued at $15 million and was expected to soon be worth $25 million, according to the release.
Three investors sustained a total loss of $500,000, and Tysdal agreed to pay back the full amount as part of his plea agreement, the DA's Office said.
McCann said the scams reinforce the adage that if it's too good to be true, it probably is.
"We are pleased that we caught this skilled con artist, and we thank the many victims who came forward to tell their stories," McCann said.
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