Go to the mobile version of this Web site.

Login | Contact Us | Site Map | Paid archives | Electronic edition | Subscription Questions | Extras

Offshore bank Tuus Financial calls it quits

David Milstead, Rocky Mountain News

Published October 19, 2007 at midnight

Text size  

More Money & Markets

More stories »

One of two offshore banks in Colorado is going out of business.

Tuus Financial, founded in 2005 by local investment company Geronimo Partners, told state regulators it wants to surrender its charter. The state Banking Board, which regulates the industry, approved the move Thursday.

Colorado passed the foreign capital depository law in 1999 with hopes of bringing millions in tax revenue to the state. Nonresident noncitizens could put money in a depository, and it would be protected from foreign civil disputes. The state would collect a small assessment on the deposits.

American International Depository & Trust became the first to open in 2003, and Tuus Financial got its charter in November 2005.

At the time, David Prokupek, the CEO of Geronimo Partners, said "the wealth that's outside the U.S. is growing faster than the wealth inside the U.S. It's a big opportunity worldwide."

Tuus Financial has been dormant since August 2006, however, and garnered no deposits or funds. Its capital, provided by Geronimo, will be returned to the parent company.

Prokupek did not return a call Thursday afternoon. Toni Clair, the Division of Banking's manager of applications, told the Banking Board on Thursday that Geronimo hadn't told the division why it was giving up.

Board member Terry Reitan suggested "they can be a registered investment adviser and do the same thing, without the (extra) regulation."

American International had no deposits by mid-2006, but founder Jerry James said the company had gained its first depositors by the end of last year. It also manages an investment fund and engages in other financial activities.

American International has run afoul of the Division of Banking, which is pursuing an enforcement action against the depository in Colorado's Office of Administrative Courts. That action, described in a hearing by Assistant Attorney General Stephen Smith as an attempt "to suspend or revoke" American International's charter, has now been sealed by order of Denver District Court.

Finance Editor David Milstead can be reached at or 303-954-2648.