AI Image
Colorado radiologist took $5 million in ‘Ponzi-like’ AI investment scheme, lawsuit alleges
The Denver Post • • business
Key Points:
- Michael Cole, a Lakewood radiologist, is accused of defrauding 14 investors, including family and former colleagues, out of more than $5 million through a fraudulent AI investment scheme under his company Sage Income LLC.
- Cole falsely claimed that his AI algorithm traded securities to generate above-average returns, but bank records show the company consistently lost money from 2019 to 2024, and investor payouts were funded by new investments in a Ponzi-like manner.
- Cole was not licensed to sell securities in Colorado and allegedly used investor funds for personal expenses and to pay off unrelated loans, rather than for the development of the AI software as claimed.
- Sage Income LLC filed for bankruptcy in February 2025, leaving investors with losses totaling over $3.9 million, prompting Colorado officials to warn about scams exploiting new technologies like AI.
- Colorado Securities Commissioner Tung Chan emphasized caution for investors, advising thorough research and skepticism of investment opportunities that seem too good to be true.
