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Colorado Springs developer accused of fraud has new charges added

A Colorado Springs developer was already facing a March 19 trial on more than a dozen securities fraud charges when he was arrested again Friday and charged with stealing more than $1 million in grant funds intended for the U.S. Olympic Committee.

The grant money was earmarked to pay for the organization's new headquarters and a pair of related projects, prosecutors said.

The 47-year-old developer was released from the El Paso County Criminal Justice Center on a $50,000 bond after his arrest.

Prosecutors claim much of the allegedly stolen money is from $2 million in grants the El Pomar Foundation made to Colorado Springs to pay to remodel a former utilities building for the USOC and to fix up a downtown office building that would serve as the USOC's home until its headquarters are completed.

The question before the judge scheduled to preside over the fraud trial is now whether or not the new charges will affect that legal proceeding.

The new charges were spelled out in an arrest warrant from the 4th Judicial District Attorney's Office: "Through theft, bank fraud and other acts in a pattern of racketeering, (the defendant) stole over a million dollars."

Prosecutors say the suspect created and submitted duplicate invoices from contractors. They claim he then used those funds to buy a majority share of a building being used temporarily by the USOC and to buy property and make payments on other land deals his company was involved in.

The investigation involved scrutiny of more than 100 bank accounts and 9,000 transactions, prosecutors said.

Source: LoanSafe.org: "Former Developer of USOC Building Arrested for Theft and Racketeering," Wayne Heilman, Feb. 7, 2012

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