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Securities fraud leads to 10 years in prison

May 16, 2017

An Aurora man who bilked investors out of more than $900,000 has been sentenced to 10 years in prison.

Chisan Chong, 41, pleaded guilty March 3 to five counts of felony securities crimes in a case dating to September 2011. The case was investigated by Greenwood Village police assisted by the Colorado Division of Securities, part of the Department of Regulatory Agencies.

Chisan Chong

Chisan Chong

On May 12, Arapahoe District Judge Kurt Horton sentenced Chong to 10 years in the Department of Corrections for three counts, and 25 years of economic crimes probation for the remaining two counts. Chong also was ordered to pay more than $1.3 million in restitution (including interest) to his victims.

“This defendant has engaged in long-term patent fraud and has taken no outward steps that he will respect the law going forward,” Judge Horton said. “Securities fraud is a serious crime and can cause great personal and societal harm. … A correction sentence is appropriate.”

Chong’s attorney had requested probation.

Prosecuting attorney Erika Reuer requested prison time.

The defendant “is not credible. … There is no reason to believe any explanation offered by Mr. Chong,” Reuer told the court. “He is a detriment to everyone else and this is certainly a case that warrants prison.”

District Attorney George Brauchler praised the work of the investigating team and the decision of the court.

“To those who believe they can financially exploit people in this community without fear of prison, let this case and its result serve as a warning. Economic crimes harm victims in ways that can last longer than physical crimes,” he said. “My office has an aggressive economic crimes unit, and I’m glad to see the court supporting our efforts in this area with a stiff sentence for this perpetrator.”

Colorado Securities Commissioner Gerald Rome agreed.

“Judge Horton made a strong statement to would be con artists: Colorado is a bad place to cheat investors. Investment crooks are caught, prosecuted and sent to prison here,” Rome said. “I am pleased that the collaborative work between the Division of Securities, Greenwood Village police, and the 18th Judicial District Attorney’s Office has brought this criminal matter to a successful and just conclusion.”

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Securities fraud leads to 10 years in prison was last modified: September 13th, 2017 by Eric Ross

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