Madyson Investments shut down

DENVER - Colorado  Securities Commissioner Gerald Rome obtained an emergency court order against Joseph David Ryan and his companies, collectively known as “Madyson Investments,” which include Madyson Capital Management LLC, Madyson Equity Group LP, Madyson Holdings Inc., Madyson Realty Fund I LLLP, and Madyson Realty Partners LLC, all located in Colorado Springs, Colorado.  The complaint for injunction and other relief alleges that the Defendants committed securities fraud by misleading investors and utilizing investor money to fund an extravagant personal lifestyle.

According to allegations by the Division of Securities, part of the Department of Regulatory Agencies, Defendant Ryan, the sole control person of Madyson Investments, offered and sold securities to at least 78 Colorado residents and over $13 million in investments. Ryan promoted the investments as being used to acquire residential and commercial properties to own and operate as rental properties. Many investors then redirected money from retirement accounts into Madyson Investments, allegedly based on promises of low risk and guaranteed profits.

The division alleges that, rather than utilizing the investors’ funds as stated, the defendants purchased a personal residence for Ryan, as well as residences occupied by Ryan’s assistant and Ryan’s wife, neither of whom paid rent. The complaint also lists purchases of luxury vehicles, medical expenses for treatment of Ryan’s girlfriend at a rehabilitation facility, and $10,000 worth of jewelry and other luxury goods.

As part of the complaint, Commissioner Rome is seeking a permanent injunction of the defendants from the securities industry in Colorado, restitution, and the imposition of a constructive trust and/or equitable lien on all properties that were allegedly purchased using fraudulently acquired funds.

A hearing has been set for November 9th in Denver District Court. The division is represented by attorneys from the Colorado Attorney General’s Office.