A Lone Tree man who deceived athletes, sports agencies and entertainers with false information about investments and loans was sentenced Thursday to six years in the Colorado Department of Corrections.
Tyler Tysdal, 51, pleaded guilty a year ago to a single charge of making untrue statements in each of two separate cases filed by the Denver District Attorney's Office against him in 2019 and 2020.
Tysdal initially faced more than 70 charges, including racketeering.
As part of last year's plea agreement, Tysdal agreed to pay a combined $18.5 million in restitution to the investors of Cobalt Sport Capital LLC, a firm he and Grant Carter of Georgia incorporated in 2011.
For the next eight years, Tysdal and Cobalt made short-term, high-interest loans, ultimately obtaining more than $46 million from 77 investors, per prosecutors.
"Tyler Tysdal conned people by making promises of exorbitant profits with little risk and by withholding the truth about his business dealings and operations," Denver District Attorney Beth McCann stated in a press release announcing last year's plea deal. "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."
Tysdal was sentenced to six years in prison in each of the two Denver cases. He will the serve the terms at the same time and not back-to-back.
Tysdal, Carter and two of their Cobalt assistants reached a settlement regarding separate federal violations in 2019. Tysdal was ordered to pay more than $1 million in restitution and penalty in that case.
Sentence terms run concurrent, per Carolyn Tyler:
Today, the judge sentenced Tyler Tysdal to serve six years in the Department of Corrections plus three-years parole and to pay $500K in restitution for case number 20CR15215. Tysdal was also sentenced in case number 19CR15491 to serve six years in the Department of Corrections plus three-years parole and to pay restitution of $18 million. The sentences are to run concurrently.
Tysdal's co-conspirator, Grant Carter, sentenced to 4yrs DOC.
Each pleaded guilty to 1 count of Securities-Make Untrue Statement (F3).
2019CR15491.....sentenced to 6yrs DOC.
2019CR15492.....no results yet.
2019CR15491 (68 charges, one guilty plea to an F3)
06/30/2022 130 PM Sentencing Hearing Room 5B
2020CR15215 (4 charges, one guilty plea to same F3)
same sentencing hearing
(co-conspirator Grant Carter being sentenced same day, same courtroom, at 3:30pm; 67 charges, 1 guilty plea to an F4)
06/10/2022 130 PM Sentencing Hearing Room 5B ---continued.
Scheduled sentencing hearing was vacated.
Motion to Continue was filed 4/6/22 (does not show which party filed it), and a review is now scheduled.
04/13/2022 600 AM Review Room 5B -----not usually a hearing, technically. we should contact DA's Office for follow-up.
04/08/2022 300 PM Sentencing Hearing Room 5B
7/1/21.........Tyler Tysdal Pleads Guilty To Financial Crimes, Agrees To Repay $18.5 Million To Investors
Fifty-year-old Lone Tree resident Tyler Tysdal, facing more than 70 felony charges in two separate criminal cases, reached a plea deal with prosecutors from the Denver District Attorney's Office June 24. He pleaded guilty to one count of securities fraud in each of the cases.
Tysdal agreed to pay back $18.5 million to clients who deposited funds into Tysdal's investment schemes, the Denver DA's Office announced in a press release Thursday.
Those investors included celebrities, athletes and entertainers.
Their investments totaled more than $46.5 million.
"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. "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."
According to case documents, a Denver grand jury indicted Tysdal and Grant Carter on racketeering charges. The two men incorporated Cobalt Sports Capital LLC in Denver in December of 2011. For the next eight years, Tysdal made short-term, high-interest loans and obtained obtained more than $46 million from 77 investors, per prosecutors.
"Through a complicated financial scheme," the DA's Office stated in its press release, "Tysdal defrauded investors by making false and misleading statements and by omitting key facts about his business dealings and operations."
The Denver Post reported that three former University of Southern California quarterbacks - Carson Palmer, Matt Cassel, and Mike Van Raaphorst - were among the victims of Tysdal's scheme.
The grand jury issued its indictment December 11, 2019. Tysdal turned himself in at the Glendale Police Department on the 17th and was released on a $10,000 bond. He appeared in court Christmas Eve.
A year later, a separate indictment was handed down based on Tysdal's solicitation of funds for a Curious Cork Imports LLC, a wine distributorship.
"Tysdal made false claims," the DA's stated in its press release, "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 is scheduled to be sentenced in both cases on January 21, 2022. He faces eight-year prison sentences in each in addition to the victims' restitution, although those terms could run simultaneously and not back-to-back. He is also expected to pay at least $2 million in restitution immediately.
Meanwhile, a search of online public records indicates Tysdal and Cobalt Sports Capital are defendant in a still-active civil litigation filed in 2016. CBS4 reached out to an attorney representing complainants in that case but had not yet received a reply. This story will be updated with any response.
Carter is scheduled for an August 26 court appearance in his case.
for more features.