UPDATE: Ponzi scheme funded lavish lifestyle, officials say

Investigators say an Aurora investment manager conducted a $20 million Ponzi scheme targeting his family, friends and seniors in Colorado to buy himself classic cars, boats, motor homes and artworks by Rembrandt that are worth millions of dollars, 9News reports.

Shawn Merriman got the money from more than 38 investors or investor groups, according to a civil complaint. Merriman admitted running a Ponzi scheme thought to have defrauded nearly 40 investors or investor groups in Colorado, Minnesota and Utah of $17 million to $20 million beginning in 1994 through 2009, according to the complaint.

“Emotionally, you just go into a shut down mode where you try to escape from it until it kind of surrounds you and you realize you just lost everything you worked for all your life,” one investor who did not wish to be identified told 9NEWS reporter Jace Larson on Wednesday. “I was in shock and disbelief.”

U.S. Attorney David Gaouette says Merriman operated the illegal investment/securities scheme out of his home through his companies Market Street Advisors and Mountain Springs Partners, promising people he would invest their money in stocks that would earn 7 to 20 percent returns each year.

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