Colorado Man Pleads Guilty to Securities Fraud

A Ft. Collins, Colo., businessman accused of swindling investors of $3.4 million has pleaded guilty to one count each of felony theft and securities fraud.

Thirty-six-year-old Jeremy Hart entered his plea Nov. 29, 2010. Prosecutors say Hart and 45-year-old Richard Novaria of Greeley ran a Ponzi scheme between July 2006 and May 2008.

Prosecutors say 29 investors put money into the Dreamweaver Foundation, which Novaria ran. Many were clients of Hart’s insurance business, Hart Financial Inc. An indictment alleged some investors’ money was used to make monthly interest payments to other investors.

The Coloradoan reports Hart faces up to nine years in prison, plus restitution at a sentencing hearing Jan. 21. Novaria is also set to be arraigned that day.