DENVER (KDVR) – Tyler Tysdal, an investment fund manager in Denver, has pleaded guilty in two separate financial crime cases.
Tysdal, 50, is facing concurrent prison sentences of up to eight years. He will be sentenced on Jan. 21, 2022.
He is also expected to pay at least $2 million in up-front restitution as part of his plea agreement.
A Denver Grand Jury found sufficient evidence to charge Tysdal with violating Colorado’s Organized Crime Control Act, and on Dec. 17, 2019, a case was opened.
Tysdal ran Cobalt Sports Capital LLC, which made short-term, high-interest loans to athletes and entertainers. Through a complicated financial scheme, prosecutors say Tysdal defrauded investors by making false and misleading statements and omitting key facts about his business dealings and operations.
In total, Cobalt took in more than $46 million from 77 investors.
Tysdal pleaded guilty to securities fraud in this case and agreed to pay more than $18 million in restitution.
In a separate case, Tysdal began operating an investment scam and a separate criminal case was filed by prosecutors.
Tysdal claimed he was seeking investment capital to fund the national expansion plans of Curious Cork Imports LLC, a wine distributor. He marketed Curious Cork as an importer and brand builder of fine European wines backed by celebrities and athletes, prosecutors say.
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. 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.
“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 McCann in a media statement. “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.”