January 27, 2011 --

http://www.bcbr.com/article.asp?id=55755

DENVER - A former Boulder bank president and private fund manager was charged in U.S. District Court for alleged multiple financial scams of more than $5 million, which lasted about five years.

Mark Yost, 47, manager of Yost Partnership LP in Boulder, pleaded not guilty on Wednesday to charges of fraud, false statements to banks and money laundering and was released on a personal recognizance bond, according to the U.S. Attorney's office in Denver. A change of plea hearing has been scheduled for Thursday, Feb. 3, the office said in a statement.

As president and chairman of Flatirons Bank in Boulder, Yost devised schemes to defraud the bank and investors, the U.S. Attorney's office said in a press statement. He caused the bank to create fraudulent lines of credit and diverted the funds to his own benefit, according to the U.S. Attorney's office. He also inflated Yost Partnership's assets and made multiple false statements to banks and investors, according to the statement.

"Financial frauds like this one have been all too common in recent years, and the U.S. Attorney's Office is determined to fight them," said U.S. Attorney John Walsh.  "In many cases investors are misled by unrealistic profit projections and impossibly high returns.  This case is yet another reminder that thoroughly checking out an investment is crucial for all investors."

Yost Partnership LP's fund had less than $20,000 in assets at the end of 2009, according to the charge sheet against him, even though he told regulators that the fund had about $28 million.

Yost faces up to 30 years in prison and close to $3 million in fines for the various charges against him.