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A Colorado home appliance installer pretending to be a broker agreed to pay $106,769 to settle charges that he defrauded about 41 investors, including U.S. Air Force Academy cadets, out of almost $98,000, according to the Securities and Exchange Commission.

In a complaint filed Monday in U.S. District Court for the District of Colorado, the SEC said that, from about December 2017 through February 2019, Milton J. Dosal Jr. raised funds from investors, about a quarter of whom were cadets at the U.S. Air Force Academy, under the guise that he would day-trade stocks on their behalf.

Dosal, a car enthusiast, met several investors attending car club events, including an Air Force Academy cadet who Dosal then used to gain access to other cadets he persuaded to invest, according to the complaint.

Dosal falsely claimed to be a securities professional and misled investors about his trading activity and their investment returns, the complaint alleged. The SEC further alleged that Dosal’s empty promises included telling investors they could, with little risk, expect weekly returns of up to 10%.

However, “rather than trading stocks, Dosal used most of the investor funds to pay back prior investors and for personal expenses, including gambling and jewelry,” according to the complaint. For most of the relevant period, “Dosal did not trade any securities at all,” the complaint alleged.

“Dosal furthered and covered up his fraud by making Ponzi payments (i.e., using new investor funds to make payments owed to other investors) and by making false statements to investors about his trading activity and their investment returns,” according to the complaint.

Dosal also allegedly used fake stockbroker agreements and false account balances for some investors, the SEC said.

Without admitting or denying the allegations in the SEC’s complaint, Dosal consented to the entry of a final judgment permanently enjoining him from violating the antifraud and broker-dealer registration provisions of federal securities laws.

Dosal further agreed to return $51,633 of allegedly ill-gotten gains plus prejudgment interest of $3,503, and to also pay a $51,633 civil penalty, the SEC said.