DD Support Board and Research Team

[1manband]

Men charged with securities fraud for marketing predictive software

http://www.denverpost.com/business/ci_27018016/men-charged-securities-fraud-marketing-predictive-software

Two Direction Labs executives have been arrested and charged for soliciting investments in a predictive software that they claimed provided stock market investors with signals on when to enter and exit positions.

Prosecutors allege that the Greenwood Village company's Second Sight software claimed to "take all the guesswork" out of making trades, was "bulletproof" and that investors would "never lose."

Company chairman Chisan "Chris" Chong, 39, of Aurora, and chief operating officer Steve Linnenkamp, 50, of Castle Rock, face multiple counts of felony securities fraud and theft.

Linnenkamp also faces computer crime and conspiracy charges.

Affidavits filed in the case allege that Chong and Linnenkamp solicited more than $800,000 from one family alone. Investigators also claim the men solicited money for a "trading investment" for the investors' benefit and later asked for additional funds to keep Direction Labs in operation.

None of the investors have received any of their money back, according to the allegations.

After their arrests, Chong was released on $75,000 bond and Linnenkamp was released on a $10,000 personal recognizance bond.

The investigation was conducted by the Colorado Division of Securities, the Greenwood Village Police and the 18th Judicial District DA's office.

The case is filed in Arapahoe County District Court.


http://www.denverpost.com/business/ci_27018016/men-charged-securities-fraud-marketing-predictive-software