A former stockbroker accused of running a $21 million Ponzi scheme from his suburban Denver home for 15 years has pleaded guilty to felony mail fraud.
A former stockbroker accused of running a $21 million Ponzi scheme from his suburban Denver home for 15 years has pleaded guilty to felony mail fraud.
Shawn Merriman entered the plea Wednesday in federal court in Denver. The 46-year-old faces up to 20 years in prison when he is sentenced May 10.
Authorities alleged Mr. Merriman, a former bishop in The Church of Jesus Christ of Latter-day Saints, told investors he was using their money to buy and sell securities. They claim he actually used the money to take safari trips and buy antique cars and artwork.
Mr. Merriman apparently owned several classic cars — including a silver Aston Martin, 1932 and 1936 Auburns and a 1932 Ford Highboy — taxidermy and artwork that included Rembrandts and other Old Masters.
Federal marshals in April seized some of those assets. They also sezied a home in Aurora, Colo., two properties in Idaho, and artwork from a home in Alpharetta, Georgia.
Prosecutors say the cars, a pitching machine and other seized items seized, will be used to compensate victims.
Mr. Merriman, an unlicensed broker, allegedly began an investment fund in 1995. He reportedly lost $400,000. He purportedly started other funds to hide his losses.
Reports indicate Mr. Merriman scammed family members, neighbors, and referrals from friends.
Although he admitted to committing fraud, Mr. Merriman disputes the $21 million loss figure. Under federal sentencing guidelines, a loss of more than $20 million is an aggravating factor that would warrant a harsher sentence.
(The Associated Press and Denver Post contributed to this article)
