Man indicted for $9.4 million securities fraud

Rocky Mountain News

Published February 20, 2007 at midnight

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A 48-year-old man has been indicted on 49 counts of securities fraud and one count of theft, Colorado Attorney General John Suthers announced today.

Robert O. Bryan faces a penalty of up to 12 years in prison and $750,000 in fines on each of the counts.

According to a press release from Suthers, Bryant was allegedly involved in a scam that promised investors high rates of return on loans backed by deeded real estate.

Bryant and his partner, Salvatore Favata of Orange County, Calif., allegedly approached consumers across the Front Range through California-based National Consumer Mortgage Co. claiming to represent individuals needing a loan with real property as collateral; often, when no such individuals or property actually existed.

In total, Bryant is accused of taking in excess of $9.4 million from Colorado families through 130 different transactions. More than $8 million of those funds were never repaid.

"Individuals who commit securities fraud prey upon the trust and good faith of Coloradoans," Suthers said in the press release. "Cases like this demonstrate that fraudulent activity will not go unnoticed, and responsible parties will be held accountable."

The indictment was filed in Douglas County District Court. The Attorney General's Office and Douglas County District Attorney are working together in the prosecution.

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