Colorado Atty William E. Dawn Guilty Of Mail & Wire Fraud, Ordered To Pay $366,000.00 In Restitution
In 2015, Dawn pleaded guilty in federal court to a single felony count of conspiracy to commit wire and mail fraud. He was sentenced to three years of probation and was ordered to pay over $366,000.00 in restitution.
In the criminal proceedings, Dawn admitted the following facts. Dawn was in-house counsel for a Denver financial company, Compass Financial Solutions, LTD. CFS marketed and sold promissory notes that it purportedly guaranteed. In 2010, CFS began defaulting on those notes. Around that time, Dawn’s co-conspirators began to market and sell promissory notes that were purportedly guaranteed by a certain wealthy individual, also a co-conspirator. To induce investors to purchase these notes, Dawn enabled his co-conspirators to make false and misleading representations to investors. Dawn drafted promissory notes for co-conspirators’ use in soliciting investor funds for the notes purportedly guaranteed by the wealthy individual, even though Dawn knew that CFS would in fact use the proceeds from the notes to make payments on CFS’s notes in default. To hide this fact from investors, Dawn and his co-conspirators agreed to have investors wire their funds to Dawn’s own trust accounts. He then wired the funds to accounts controlled by the co-conspirators.
The attorney is suspending for three years and must prove fitness for reinstatement. (Mike Frisch)