What happened
Colorado Securities Commissioner Tung Chan has filed civil fraud charges against Michael Cole and Sage Income LLC of Lakewood, Colorado. The complaint accuses them of securities fraud and unlicensed activities in violation of the Colorado Securities Act. According to the complaint, Cole allegedly raised $5.2 million from 14 investors through promissory notes in his company, Sage Income LLC. The company claimed to use its own artificial intelligence (AI) software to trade securities, promising higher than average market returns of between 9 percent and 15 percent a year. However, the complaint alleges that Sage actually lost money from November 2019 through December 2024, and Cole allegedly told investors the AI software had worked well in the past, but that was not true. The complaint also alleges that Cole admitted to investigators that investor money was used to build and train the AI software through trial and error, and bank records allegedly show Cole used investor money to pay interest to earlier noteholders in a Ponzi-like scheme.
Colorado Securities Commissioner Tung Chan has filed civil fraud charges against Michael Cole and Sage Income LLC of Lakewood, Colorado.
The complaint accuses them of securities fraud and unlicensed activities in violation of the Colorado Securities Act.
According to the complaint, Cole allegedly raised $5.2 million from 14 investors through promissory notes in his company, Sage Income LLC.
The company claimed to use its own artificial intelligence (AI) software to trade securities, promising higher than average market returns of between 9 percent and 15 percent a year.
However, the complaint alleges that Sage actually lost money from November 2019 through December 2024, and Cole allegedly told investors the AI software had worked well in the past, but that was not true.
Source details: kiowacountypress.net
Why it matters
This case highlights the potential for AI-related investment scams and the importance of due diligence for investors. Commissioner Chan warns that investors should slow down and research before investing, and remember that if it's too good to be true, it usually is. The Colorado Division of Securities is urging anyone who has invested in Sage Income LLC or knows someone who has to contact them with complaints.
This case highlights the potential for AI-related investment scams and the importance of due diligence for investors.
Commissioner Chan warns that investors should slow down and research before investing, and remember that if it's too good to be true, it usually is.
The Colorado Division of Securities is urging anyone who has invested in Sage Income LLC or knows someone who has to contact them with complaints.
The case also raises questions about the regulation of AI-related investments and the need for greater transparency in the industry.
It is unclear what specific measures regulators will take to prevent similar scams in the future.
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What to watch next
The outcome of this case and the potential consequences for Michael Cole and Sage Income LLC. The impact on the AI investment industry and the measures that regulators will take to prevent similar scams in the future.
The outcome of this case and the potential consequences for Michael Cole and Sage Income LLC.
The impact on the AI investment industry and the measures that regulators will take to prevent similar scams in the future.
The potential for similar scams to occur in the future and the need for greater awareness and education among investors.
The role of AI in investment scams and the potential for AI to be used in other types of scams.
The need for greater regulation and oversight of the AI investment industry.