A former stockbroker accused of running a $21 million Ponzi scheme from his suburban Denver home for 15 years has pleaded guilty to a felony mail fraud charge.

Shawn Merriman entered the plea Wednesday in federal court in Denver. The 46-year-old faces up to 20 years in prison when he is sentenced May 10.

Merriman also faces a maximum fine of $250,000 and could be ordered to pay restitution.

Authorities alleged Merriman, a former bishop in The Church of Jesus Christ of Latter-day Saints, told investors he was using their money to buy and sell securities. They say he actually used the money to take safari trips and buy antique cars and artwork.

(AP)

Merriman pleads guilty in alleged Ponzi scheme

Accused Ponzi scheme operator Shawn Merriman of Aurora pleaded guilty in federal court on Wednesday to felony mail fraud, which carries a maximum sentence of up to 20 years in prison.

In his plea agreement, Merriman admitted that he operated a Ponzi scheme, which according to prosecutors bilked at least 68 investors out of $21 million between 1994 and 2009.

Merriman said that he told investors that he would invest their money in securities. Instead, he used it to buy works of art, antique cars, a motor home, sports memorabilia, trips abroad and to make donations to his church.

But he disputes the $21 million loss figure. Under federal sentencing guidelines, a loss of more than $20 million is an aggravating factor that would warrant a harsher sentence.

His sentencing is scheduled for May 10. On top of a prison term, Merriman could be ordered to pay a fine of as much as $250,000, and also could be ordered to pay restitution to victims.

A Ponzi scheme describes a fraud in which money from new investors is used to pay off old investors.

Merriman said in his plea agreement that he admitted his crime in separate telephone calls to most of his investors in March. He also confessed to his family and his church, which resulted in a divorce and an excommunication, he said.

In April, U.S. marshals seized Rembrandts and hundreds of other works of art from Merriman’s Aurora home, as well as the home itself, another property in Idaho, classic cars, a boat, motorcycles, sports memorabilia, guns and taxidermy.

Merriman was reportedly a former bishop in the Church of Jesus Christ of Latter-day Saints.

(Denver Business Journal - by Renee McGaw)