Colorado Attorney General John Suthers announced today that a Denver jury has convicted John Reinholdt II, 39, for violating the Colorado Organized Crime Control Act. That is a class-two felony. He also was convicted of his role in running a commercial Ponzi scheme using Lafayette-based business entities to defraud commercial lenders from Colorado and Arizona.
The jury also convicted Reinholdt of 14 counts of theft, a class-three felony, seven counts of defrauding a secured creditor, a class-three felony, and nine counts of forgery, a class-five felony.
Reinholdt could face up to 24 years in prison for each of the two lead charges, violating the Colorado Organized Crime Control Act and conspiracy to violate the Colorado Organized Crime Control Act. Reinholdt is scheduled to be sentenced at 8:30 a.m. on March 4.
Ponzi, subrpime scheme
According to the 40-count indictment, handed down in March 2010, Reinholdt used at least 19 businesses, including the Jaguar Group LLC, to obtain loans from “warehouse” lenders at interest rates between 5 percent and 7 percent. Reinholdt used the money to make subprime loans with interest rates of at least 11.5 percent to consumers. Starting around 2006, Reinholdt used the money raised from new warehouse lenders to pay back older lenders. Reinholdt acquired the new loans using nonexistent “straw” homebuyers.
The Office of the Attorney General worked with the Federal Bureau of Investigation to obtain the indictment and verdict against Reinholdt.