The investors lost as much as $71 million in their dealings with former hedge fund manager Sean Mueller, according to the Denver Post. The district attorney's office in Denver charged Mueller with racketeering, securities fraud, two counts of theft and violating the Colorado Organized Crime Control Act.
According to the office of Denver District Attorney Mitch Morrissey, over the past decade Mueller allegedly used money from new investors to pay old ones, did not deposit funds from investors in brokerage accounts as he had promised and produced fake account statements.
The state and the US Secret Service helped with the investigation.
"This is an important example of how agencies can work together to protect investors in Colorado," Colorado Securities Commissioner Fred Joseph said in a statement.
The amount of money that Elway had invested with Mueller was not disclosed and the quarterback's agent and spokesman, Jeff Sperbeck, declined to comment to the news source.