Insurance Broker Found Guilty Of $1M Fraud

DENVER (CBS4)- A man accused of stealing more than $1 million from elderly victims through securities fraud has been found guilty.

Michael Mendenhall was indicted in April 2011 and charged with 27 counts of theft and securities fraud. He was found guilty Friday on 25 counts. Two counts were dismissed when the victim was unable to go forward.

Mendenhall, 48, was an insurance broker who targeted elderly victims, convincing them to withdraw large sums of money to invest with him in exchange for promissory notes.

Instead of investing the money, Mendenhall used investor funds to make payments to other investors and to pay for his personal expenses and lifestyle.

There were 16 identified victims in the original indictment with losses that totaled approximately $1.2 million. Mendenhall has one more case pending.

Mendenhall remains in the custody in the Denver Detention Center. He is scheduled to be sentenced April 20.