By Peter Jones
Criminal charges have been filed against Direction Labs, a Greenwood Village-based software company, Colorado Securities Commissioner Gerald Rome announced.
According to arrest affidavits, Direction Labs allegedly promised that its “bulletproof” Second Sight software could take “all the guesswork” out of making trades and that investors would “never lose.”
The affidavits further allege that defendants solicited more than $800,000 from one family, and that defendants initially solicited funds for a “trading investment,” but later requested more money to keep Direction Labs in business. Nothing was returned to the investors.
Chisan Chong of Aurora and Steven Linnenkamp of Castle Rock face multiple counts of felony securities fraud and theft. Linnenkamp was charged with three additional felonies.
Chong was arrested and released on bond in the amount of $75,000. Linnenkamp was released on a $10,000 personal recognizance bond.
The investigation was conducted by the Colorado Division of Securities, the Department of Regulatory Agencies, Greenwood Village Police and the District Attorney’s Office.
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