Note: The charge against Dennis Farrah was dropped.

Joseph David Ryan, 58, and Dennis Farrah, 66, both of Colorado Springs, have been indicted by a Colorado State Grand Jury for securities fraud following an investigation by the Colorado Division of Securities, part of the Department of Regulatory Agencies, and prosecutorial work by the Colorado Attorney General’s Office.

“An order of preliminary injunction barring Ryan from engaging in securities-related business in Colorado or destroying any records was granted in November 2017 in Denver District Court,” a news release issued by DORA states. “A receiver was also appointed at that time to take over management of all assets related to Ryan’s businesses, collectively known as ‘Madyson Investments.'”

According to the indictment, Ryan, the sole control person of Madyson Investments, offered and sold securities to at least 79 Colorado residents who invested approximately $11 million.

“Many of these investors became acquainted with Ryan through Farrah Tax Advisory and Senior Planning Group where they held annuities managed by Dennis Farrah,” the release said. “Ryan, who offered free tax services for Farrah’s clients and had purchased Farrah’s book of business, convinced investors to cash out their annuities and place the funds with Madyson companies. He first claimed the investment funds would be used to purchase stocks, then to acquire residential and commercial properties to own and operate as rental properties. Ryan allegedly made promises of low risk and guaranteed profits of six to ten percent.”

Rather than utilizing the investors’ funds as stated, the indictment states Ryan purchased a personal residence, as well as paid rent on two other residences. The complaint also lists purchases of luxury vehicles, jewelry and other luxury goods.

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Dennis has been charged with one count of securities fraud. Ryan has been charged with 10 counts of securities fraud.

A hearing for Farrah took place July 12 in El Paso County Court and Ryan’s first appearance is yet to be set.