House-Flipper in Colorado Charged with 11 Counts of Securities Fraud

A Colorado house-flipper, Mack Jamie Sprouse, residing in Jefferson County, found himself in legal trouble when he was indicted on 11 counts of securities fraud by a grand jury. Sprouse was taken into custody on June 3, 2025, following the indictment.

According to the indictment, Sprouse managed to raise nearly $4.8 million from roughly 80 investors for his house-flipping venture, Urban Veneer Holdings LLC. This capital was acquired through the issuance of promissory notes, assuring investors of principal repayment accompanied by high-interest returns. Allegations in the indictment state that Sprouse misled investors by concealing material facts and making false declarations. Further, his business practices were deemed deceptive and fraudulent towards investors, who were misled about the utilization of their funds. Sprouse allegedly made investors believe that their investments were backed by Urban Veneer or specific real estate assets, however, he failed to secure these investments, lacking the necessary funds for reimbursements.

As a critical point, it should be noted that Sprouse was operating without the requisite registration to sell securities in Colorado. The Colorado Division of Securities spearheaded the investigation into this matter, with the Colorado Attorney General’s Criminal Justice/Financial Fraud Unit leading the prosecution.

A grand jury indictment signifies a formal accusation of a crime under Colorado law, emphasizing the presumed innocence of all defendants until proven guilty. For individuals who have invested in Sprouse’s company, Urban Veneer Holdings LLC, reaching out to the Division of Securities or the Colorado Attorney General is advised for further information.

DORA, Colorado’s comprehensive regulatory agency, oversees licensing and registration for various professions and businesses, advocating for balanced regulation in Colorado industries. The agency prioritizes consumer protection and fair competition within the marketplace, with nearly 600 dedicated employees working towards these objectives.

The Division of Securities within DORA focuses on safeguarding investors and upholding confidence in the securities market. By licensing securities professionals, taking measures against securities law violations, and educating Coloradans to be informed investors, the division plays a crucial role in maintaining market integrity. To delve deeper into the Division of Securities’ functions and initiatives, visit securities.colorado.gov for additional insights.