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GRAND JURY INDICTMENT HANDED
DOWN
IN SECURITIES FRAUD CASE
July 12, 2001
Contact:
Lynn Kimbrough, 720-913-9025
A Denver Grand Jury has returned an 18-count indictment against
Scott A. McDonald, a former employee at Fox 31 Television, in connection
with a securities fraud case.
McDonald (DOB: 10-30-72) is charged with six counts of securities fraud
(F3), nine counts of theft (F3 and F4), two counts of forgery (F5), and
one count of transacting business as a broker-dealer without a license
(F6).
The indictment alleges that McDonald offered victims a chance to invest
in initial public stock offerings, but instead used investor money to
gamble, failed to use prior investors' funds to purchase stock or return
funds to them, and failed to tell victims that he had a gambling problem.
The indictment alleges that McDonald showed several investors a forged
promissory note claiming it demonstrated the legitimacy of the
investments. The indictment also alleges McDonald received other funds for
business purposes but did not use the money for those purposes. The
indictment alleges victims invested or loaned $146,500 between December
1999 and January 2001.
The presumptive range for sentencing on a class 3 felony is 4 to 12
years in the Department of Corrections. The presumptive range for a class
4 felony is 2 to 6 years.
*The filing of a criminal charge is merely
a formal accusation that an individual(s) committed a crime(s)
under Colorado laws. A defendant is presumed innocent until
and unless proven guilty. See Colo. RPC 3.6
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