A Colorado man, Mack Jamie Sprouse, has been indicted for allegedly raising $4.8 million from at least 80 investors to fund his home “flipping” business, Urban Veneer Holdings LLC, based in Lakewood. The charges come after an investigation by the Colorado Division of Securities, which found that Sprouse misled investors in his house flipping operation.
The Fraudulent Scheme
Sprouse, 57, turned himself in to sheriff’s deputies after the Colorado Division of Securities presented its findings to a Jefferson County grand jury. The Division’s investigation revealed that Sprouse issued promissory notes to investors, promising high-interest payments along with the return of their principal. However, Sprouse was not registered to offer or sell securities in Colorado, and the investments were unsecured, meaning they were not backed by any real assets.
The investigation found that Sprouse lacked the funds to repay his investors. He faces 11 counts of securities fraud for his actions. According to the Division’s press release, Sprouse “made untrue statements of material fact” and “failed to disclose material facts” to investors. Additionally, he misrepresented how he would use the investor funds and relied on other sources of funding for his business.
Sprouse’s Business and Financial Troubles
Urban Veneer Holdings, founded in 2020, specializes in “house flipping,” which involves purchasing homes, remodeling them, and selling them at a profit. Despite the business’s relatively new start, public records show a series of legal and financial troubles surrounding Sprouse and his company. Since 2019, there have been six liens filed against Sprouse and Urban Veneer Holdings in Colorado. Furthermore, four civil lawsuits have been filed in Jefferson County within the last two years, with one claiming more than $447,000 in owed debts.
Legal Proceedings and Bond
Sprouse was arrested and charged following the investigation, but he was released from jail after posting a $50,000 personal recognizance bond on the same day. The Colorado Attorney General’s Criminal Justice/Financial Fraud Unit is handling the case, with a hearing scheduled for June 8.
A Personal Tragedy
In an unrelated matter, public records reveal that Sprouse is also the father of Jordan Sprouse, an 18-year-old who was tragically killed in a 2014 DUI accident just weeks before his high school graduation. The driver, Alton Kirkland, was attempting to scare his wife by speeding and running red lights when his car struck Jordan Sprouse’s. Kirkland is currently serving a 35-year sentence in the Colorado Department of Corrections for the fatal incident.
Mack Jamie Sprouse’s case highlights the dangers of unregulated investment schemes, where investors can be misled and left with significant losses. His actions in the fraudulent fundraising scheme have led to serious legal consequences. As the case moves forward, the public will await more information on how these charges are prosecuted and whether any of the investors will recover their funds.