the staff of the Ridgewood blog
Denver Co, a former CEO of Outdoor Capital Partners, a fund focused on investing in cycling companies, was sentenced to 71 months in prison for securities fraud on Tuesday. Samuel J. Mancini fraudulently raised nearly $11 million from investors with promises to acquire leading Italian cycling brands, including Cinelli, Columbus, De Rosa, De Marchi Apparel, and Limar Helmets. However, none of the acquisitions materialized, leaving investors without returns on their investments.
U.S. Attorney Philip R. Sellinger described Mancini’s actions as an elaborate scheme to deceive victims out of their money. Mancini, based in Colorado, was accused of orchestrating a Ponzi-like scheme, involving misrepresentations about fund operations, his background, and contributions to the fund.
According to the United States Attorney’s Office for the District of New Jersey, Mancini controlled Outdoor Capital Partners LLC (OCP), presented as a venture capital and private equity firm. OCP acted as the managing director of OCP Italia Fund LLC (OCP Italia), a private investment fund. Mancini used both entities to carry out his fraudulent scheme, promising investors he would raise $20 million, including $5 million of his own money, for OCP Italia to acquire Italian cycling brands. He assured investors of a 70 percent share of OCP Italia’s operating profits.
Despite promises of imminent acquisitions, none materialized. Mancini repeatedly misrepresented his education, finances, and OCP Italia’s ability to close on the acquisitions. He defaulted on contracts, forged or modified documents, and diverted investor funds out of OCP Italia.
Arrested in July 2021 on federal securities fraud, wire fraud, and money laundering charges, Mancini faced a maximum penalty of 20 years in prison and a $5 million fine for securities fraud. Ultimately, Judge Claire Cecchi sentenced him to 71 months in prison with three years of supervised release. Additionally, Mancini was ordered to pay restitution of $10,615,000 to the defrauded investors.
Mancini is also facing a civil case brought by the U.S. Securities and Exchange Commission.
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