Colorado Springs Area News
Colorado Springs Businessman Convicted Over Vacation Home Investment Fraud
A Colorado Springs businessman was convicted Monday on charges of racketeering and fraud over investments he sold between 2006 and 2011 in a vacation home company. Wells was indicted on 20 charges last year, but was acquitted on seven and convicted on 13. Prosecutors alleged that Wells took in some $8.5 million from investors in his Colorado Springs-based firm Continental Resort Homes, but the funds were used to repay investors in Wells' other ventures and to pay his bills, rather than to purchase homes for Continental Resort.
In addition to fraud, Wells was also accused of overestimating assets and understating debt on materials used to promote the business. A statement from Denver lawyer William Leone, who represented Wells in the case, said that Wells was disappointed in Monday's verdict, but he has not yet decided whether to appeal the decision. The majority of Wells' victims were from the Denver and Colorado Springs areas, though a few investors from California, Nevada, Texas and Washington were also victims. Sentencing in the case has been set for January 9th, when Wells will face up to 24 years in prison for the racketeering charge and up to eight years each on the 12 securities fraud charges.