Denver Man Pleads Guilty In $46M Fraud Case

DENVER, CO — A Denver man pleaded guilty in two financial crime cases that involved dozens of victims, the Denver DA announced Tuesday.

Tyler Tysdal, 50, targeted 77 investors and scammed them out of more than $46 million in the first case, the DA said.

The case was opened in December 2019 after Tysdal's company, Cobalt Sports Capital LLC, was making short-term, high-interest loans to athletes and entertainers, prosecutors said.

"Through a complicated financial scheme, Tysdal defrauded investors by making false and misleading statements and by omitting key facts about his business dealings and operations," the Denver DA's office said in a news release.

Tysdal pleaded guilty to securities fraud in the case and agreed to pay more than $18 million in restitution.

“Tyler Tysdal conned people by making promises of exorbitant profits with little risk and by withholding the truth about his business dealings and operations,” said Denver DA Beth McCann.

“These are all telltale signs of a scam that reinforce the adage: if it sounds too good to be true, it probably is. We are pleased that we caught this skilled con artist and we thank the many victims who came forward to tell their stories.”

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In the second fraud case, Tysdal said he was seeking investment capital to fund the national expansion plans of a wine distributor, which he marketed as an importer and brand builder of fine European wines backed by celebrities and athletes, the DA said.

"Tysdal made false claims that the company was valued at $15 million and was poised for continued success; that the company’s private label wine alone was expected to soon be worth $25 million, and that investors could expect to see a return of 10 to 15 times their investment," the news release read.

"Instead, three investors sustained a total loss of $500,000."

Tysdal also pleaded guilty to securities fraud in this case and agreed to pay $500,000 in restitution.

Tysdal is set to be sentenced Jan. 21, 2022. He is facing concurrent prison sentences of up to eight years, and he's also expected to pay at least $2 million in up-front restitution as part of his plea agreement.