An update on Mack Jamie Sprouse, who was previously indicted on 11 counts of securities fraud by a grand jury. Sprouse was arrested on June 3, 2025. The Colorado statute prohibiting securities fraud is C.R.S. Sec. 11-51-501.
Updated information reveals the breadth of the scam. The State of Colorado alleges that Sprouse victimized approximately 80 investors. According to the charges brought against him, Mack Jamie Sprouse solicited approximately $4.8 million from at least 80 investors in his house-flipping business, Urban Veneer Holdings LLC. Sprouse raised investor funds through the issuance of promissory notes with a promise to repay the principal of the note and high-interest payments.
As previously discussed, this type of fraud is considered securities fraud because profits of investors are dependent upon the actions of others. This is commonly referred to as the “Howey” test.
Sprouse is not registered to offer or sell securities in Colorado. Registration is a prerequisite to selling securities in Colorado. The Colorado Division of Securities investigated this matter, and the Colorado Attorney General’s Criminal Justice/Financial Fraud Unit is prosecuting the case.
A grand jury indictment is a formal accusation that an individual committed a crime under Colorado laws. All defendants are presumed innocent until proven guilty.
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