A Colorado guy found himself in hot water for allegedly pitching $4.8 million worth of bunk investments to about 80 folks to fund his house-flipping hustle. Here’s the scoop.

Mack Jamie Sprouse, a 57-year-old from the Rocky Mountain state, turned himself in after a probe by the Colorado Division of Securities. They laid out their case to a Jefferson County grand jury.

The Division dropped a press release saying Sprouse was handing out promissory notes like candy, pledging to pay back the dough with fat interest. But hold up—he wasn’t licensed to deal in securities in Colorado. Plus, these investments? Totally unsecured. As if that wasn’t enough, the guy didn’t even have the cash to pay back his investors.

Sprouse is now starring in an 11-count indictment for securities fraud. Not exactly the kind of show you want to headline.

Urban Veneer Holdings LLC

Sprouse runs Urban Veneer Holdings LLC out of Lakewood. The outfit deals in “house flipping,” where you snap up homes, remodel them, and sell them for a sweet profit.

The Division didn’t hold back: “Sprouse made untrue statements of material fact and failed to disclose material facts to investors and engaged in business practices that operated as fraud and deceit,” they said. He basically spun tales about his plans for the investor cash and how he was funding Urban Veneer.

Financial Troubles Behind the Scenes

Public records indicate Urban Veneer Holdings got its start in 2020. But there’s trouble in paradise: six liens were filed against Sprouse or his biz since 2019 in Colorado. Not to mention, four civil suits in Jefferson County surfaced over the last two years. One creditor even claims Sprouse owes over $447,000. Yikes.

Sprouse managed to pay a $50,000 personal recognizance bond, getting out of jail the same day he was nabbed.

Legal Proceedings

The Colorado Attorney General’s Criminal Justice/Financial Fraud Unit is on the case, with a hearing marked on the calendar for June 8. We’ll have to see how that goes.

A Personal Tragedy

On a personal note, Sprouse’s family faced heartbreak when his son, Jordan Sprouse, died in 2014. The 18-year-old was killed by a DUI driver just weeks before graduating from Lakewood High School. The driver, trying to scare his wife, sped through red lights on Kipling Avenue, crashing and taking young Sprouse’s life. Alton Kirkland, the driver, is serving a 35-year stint in the Colorado Department of Corrections.

This tale is another layer, adding tragedy to Sprouse’s unfolding legal turmoil.

Logan Smith

Logan Smith is on the assignment desk at CBS Colorado in Denver. With more than 30 years under his belt covering digital, TV, and print media, he’s seen it all.

For real-time updates, check out CBS Colorado.

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Monday was a rough day on Wall Street as the Nasdaq plummeted, leading a seismic stock sell-off. Investors are antsy, spooked by a hotshot Chinese upstart making waves in the highly competitive AI market. Yeah, I’m talking about DeepSeek, which has everyone rethinking their faith in US dominance and big profits from AI. Even Nvidia (NVDA), the crown jewel of the tech world, took a hard hit, dragging other Big Tech stocks along for the ride.

DeepSeek’s Disruption

Now, what’s got everyone sweating bullets? Well, DeepSeek, a name you might want to etch into memory, claims its AI assistant flexes the same muscles as leading models but does so using less expensive tech. What’s even more shocking is its use of cheaper chips and slimmer datasets, almost a direct challenge to the heavyweights relying on pricey tech to drive AI growth. Read more here.

With DeepSeek emerging on the scene, questions are buzzing around AI demand-driven growth; is the bubble we all bet on about to pop? This startup has essentially flipped the script, breathing life into existential fears on Wall Street about the hefty price tags slapped onto AI advancements.

Big Tech’s Big Trouble

With DeepSeek’s sudden rise, American tech behemoths are in a bind. AI powerhouse Nvidia saw its shares slip by a staggering 17%. Semiconductor stalwarts like ASML, Broadcom, and Micron Technology also felt the heat, absorbing the impact of a broad sell-off.

Even in the midst of this carnage, not everyone’s frowning. The ever-resilient Apple (AAPL) went against the grain, climbing above the fray. Interestingly, unlike its contemporaries, Apple’s approach to AI spending has been more conservative. As they gear up to report earnings this Thursday, all eyes are on their next moves.

Market Madness

In the land of stocks, chaos reigned supreme. The Nasdaq nosedived more than 3.5%, and the S&P 500 wasn’t far behind with a 2% drop. And amidst all the tumult, the blue-chip Dow risked defying the odds, managing a slight uptick of 0.1%. However, the broader landscape was painted red.

Defensive Play

With the markets rattled, investors turned to defensive stocks, pushing the Dow Jones Industrial Average into green. Safe havens like Johnson & Johnson, United Healthcare, and Procter & Gamble found favor. Notably, Big Tech names are set to unveil their earnings soon, and there’s palpable anticipation around guidance, especially with DeepSeek stirring things up.

| Nasdaq | +3.5% |
|———————|———|
| S&P 500 | +2% |
| Dow Jones | -0.1% |

Global Concerns

In another part of the world, President Trump’s ongoing tango with tariffs adds layers to the unfolding drama. His recent back-and-forth with Colombia has only intensified trade war jitters. For investors, it’s an incessant reminder that geopolitical tensions can upend markets at any given moment.

Meanwhile, as chips and tech stocks tumbled, Bitcoin took a significant hit, plunging below $100,000. Ethereum also suffered, trading at its lowest since November. Cryptos, intimately tied to tech sentiments, reflected the broader market’s unease.

The Week Ahead

As we navigate this volatile environment, new home sales data offered a silver lining, showing a slight uptick despite towering mortgage rates. Yet, it seems the real focus remains on AI and tech.

In the grand scheme of things, DeepSeek’s entry could either spur innovation or spark a shake-up that’s long been brewing. Only time, and Wall Street’s strident scrutiny, will tell where the chips fall. Stay tuned as we unravel how this plays out in earnings reports and further market strategies.

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