A Lone Tree man pleaded guilty to defrauding investors — including multiple pro athletes — of millions of dollars in a nearly decade-long Ponzi scheme, the Denver District Attorney’s Office announced Tuesday.
Tyler Tysdal, 50, faces up to eight years in prison on separate financial crimes, and his deal stipulates he pay more than $18 million in restitution, the DA’s office said in a news release.
“Tyler Tysdal conned people by making promises of exorbitant profits with little risk and by withholding the truth about his business dealings and operations,” Denver District Attorney Beth McCann said in a statement. “These are all telltale signs of a scam that reinforce the adage: if it sounds too good to be true, it probably is.”
A grand jury in December 2019 indicted Tysdal and his business partner, Grant Carter, on 67 counts including securities fraud, theft and violating the Colorado Organized Crime Control Act.
The indictment redacted the names of the alleged victims, but a leaked copy reviewed by The Denver Post showed the victims included three former University of Southern California quarterbacks: Carson Palmer, a 15-year NFL veteran and 2002 Heisman Trophy winner, Matt Cassel, and Mike Van Raaphorst.
Tysdal’s scheme, prosecutors said, involved making short-term high-interest loans to athletes and entertainers through his company, Cobalt Sports Capital, LLC.
“Through a complicated financial scheme, Tysdal defrauded investors by making false and misleading statements and by omitting key facts about his business dealings and operations,” the DA’s office said.
Cobalt obtained more than $46 million from 77 investors, prosecutors said.
Tysdal also pleaded guilty to securities fraud in a second scheme, in which he claimed to be seeking investment capital to fund the national expansion of a wine distributor.
“Tysdal made false claims that the company was valued at $15 million and was poised for continued success; that the company’s private label wine alone was expected to soon be worth $25 million, and that investors could expect to see a return of 10 to 15 times their investment,” prosecutors said. “Instead, three investors sustained a total loss of $500,000.”
As part of his plea deal in that case, Tysdal agreed to pay $500,000 in restitution.
He is set to be sentenced on Jan. 21.
In addition to the criminal cases, Tysdal and Carter agreed in 2019 to pay more than $1 million in penalties after a Securities and Exchange Commission investigation accused the two of “fraudulent conduct” conducted through Cobalt Sports Capital, according to an SEC order.
Charges are still pending against Carter.
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