Colorado man charged with Ponzi scheme targeting U.S. military service members

COLORADO SPRINGS, Colo. (KRDO) -- The Securities and Exchange Commission announced Monday that it has settled charges against a Colorado man for defrauding investors, including cadets at the U.S. Air Force Academy, in a Ponzi scheme that raised nearly $100,000.

In the SEC’s complaint, they stated that Milton J. Dosal, Jr. allegedly raised nearly $100,000 from approximately 41 investors in a Ponzi-style scheme that took place over a two-year period.

Kurt Gottschall, Regional Director for the SEC’s Denver Regional Office said, "Dosal enticed military service members and others to invest with false claims that he was a highly successful day-trader,” and said Dosal would day-trade stocks on their behalf, promising they could expect weekly returns of up to 10% on their investments.

Dosal did not admit to, or deny the allegations in the SEC’s complaint and consented to the entry of a final judgment against him for violating federal laws regarding antifraud and broker-dealer registration provisions. Dosal also agreed to return $51,633 of gains plus prejudgment interest of $3,503 and to pay a fine of over $50,000.

“The SEC will continue to vigilantly pursue fraudsters who prey upon those who serve our nation," Gottschall said.

The investigation was conducted by J. Lee Robinson and supervised by Ian S. Karpel and Jason J. Burt of the SEC's Denver Regional Office.