Colorado GP accused of fraud

Colorado Securities Commissioner Fred Joseph has filed a complaint against Gary Snisky for allegedly defrauding investors, “utilizing unlicensed sales agents” and for marketing a private equity fund over the internet.

According to the complaint, filed in Denver District Court, the trouble began in 2008 when Snisky misled at least 20 investors (to the tune of $3.2 million) by misrepresenting the nature of his fund's investments.

Operating under the names Colony LP, Colony Group, Colony LLC, Colony Holdings, and the common name Colony Capital, Snisky used investments to pay for personal expenses, including mortgage payments, the complaint alleges.

Snisky’s Longmont-based Colony Capital is not affiliated with the real-estate investment fund with the same name.

The complaint goes on to accuse Snisky, in tandem with David Burch and Brenda Ridley, of not disclosing that they, nor the Colony Entities, were not licensed broker dealers, investment advisers, sales representatives or investment adviser representatives. 

They also hid the nature of the investments being made on their investors’ behalf, as well as the risks associated with the investments, according to the complaint.

Snisky has been charged with investment adviser fraud, securities fraud, selling unregistered securities and acting as an unlicensed investment adviser. Burch and Ridley have been charged with selling securities without a license.