What does our research say about Tyler Tysdal?

Tyler Tysdal, a Denver-based investment fund manager, has been implicated in several financial misconduct cases. Below are key negative points associated with his activities:

Plea Deal and Restitution Agreement

Guilty Plea to Securities Fraud: In June 2021, Tysdal faced over 70 felony charges across two criminal cases. He entered a plea agreement, pleading guilty to one count of securities fraud in each case.

$18.5 Million Restitution Commitment: As part of the plea deal, Tysdal agreed to repay $18.5 million to investors defrauded through his schemes. These investors, including celebrities and athletes, had collectively invested over $46.5 million.

Sentencing and Incarceration

Six-Year Prison Sentence: In January 2022, Tysdal was sentenced to six years in the Colorado Department of Corrections for his fraudulent activities.

Concurrent Sentences: The court ordered that Tysdal serve concurrent six-year sentences for each case, followed by three years of parole.

Fraudulent Investment Schemes

Cobalt Sports Capital LLC: Tysdal co-founded this firm in 2011, offering short-term, high-interest loans. He misled investors by providing false information and omitting critical details about business operations, leading to significant financial losses.

Targeting High-Profile Individuals: The fraudulent schemes attracted investments from notable figures, including former NFL quarterbacks Carson Palmer and Matt Cassel, who suffered substantial losses.

Regulatory Actions and Additional Penalties

SEC Settlement: In 2019, Tysdal, along with associates, settled with the Securities and Exchange Commission over separate federal violations, resulting in over $1 million in restitution and penalties.

Ongoing Civil Litigation: Beyond criminal charges, Tysdal and Cobalt Sports Capital have been defendants in civil lawsuits since 2016, indicating a pattern of legal challenges related to his business practices.

Customer Complaints and Allegations

Misrepresentation of Investment Opportunities: Investors accused Tysdal of making exaggerated claims about potential profits while downplaying associated risks, leading to significant financial harm.

Breach of Fiduciary Duty: Complaints suggest Tysdal failed to act in the best interests of his clients, prioritizing personal gain over investor welfare, which eroded trust and resulted in financial losses.