DENVER — A local investment fund manager and his partner have been indicted on 64 counts of securities fraud, as well as racketeering, conspiracy to commit securities fraud and theft of tens of millions of dollars. The indictment obtained by FOX31/Channel 2 shows Tyler Tysdal and his business partner Grant Carter obtained more than $46 million from more than 60 investors and, according to state prosecutors, mislead them about how their money was being used.
Tysdal and Carter ran Cobalt Sports Capital which, according to the indictment, offered short-term, high-interest loans for athletes and entertainers. But investigators say Tysdal and Carter used other investment firms to cover loans and ran at a loss. The portfolio companies failed and the Securities and Exchange Commission found investors were never paid back.
According to BusinessDen, one of those alleged victims is NFL free agent Matthew Cassel and his wife who invested $1 million with Cobalt between July 2013 and September 2014. Retired quarterback Carson Palmer is also listed in the indictment as having invested and lost $2.5 million.
Tysdal and Carter were fined and censured by the SEC in September for fraud in connection with their activities at Cobalt and agreed to a $1 million settlement in the case. The state charges filed on Dec. 11, 2019 are being prosecuted separately from that investigation.