The Colorado Court of Appeals reinstated criminal charges Thursday against Colorado Springs developer Ray Marshall, overturning a 2012 decision by a 4th Judicial District judge to dismiss them after he had been acquitted in a separate case.
Marshall, chairman of LandCo Equity Partners, faced six theft and racketeering charges in connection with allegations that he diverted $1 million in grants and city funds from a $42.3 million deal to keep the U.S. Olympic Committee headquarters in Colorado Springs.
The charges, filed in February 2012, came three years after Marshall was indicted on multiple charges of defrauding investors in separate deals involving developments in El Paso County. Jurors acquitted him of the 2009 charges.
But one of the 2012 charges accused him of racketeering, based on the same actions he was charged with in 2009. Judge Barney Iuppa ruled the 2012 charges couldn't go forward, because trying Marshall would violate constitutional protections against being tried twice for the same crime.
On Thursday, the appeals court unanimously overturned Iuppa's dismissal, saying Marshall couldn't both object to prosecutors trying to join the 2009 and 2012 cases, and then argue the cases should have been joined to get the 2012 charges dismissed.
The appeals court said Marshall can still raise the double jeopardy argument.
If convicted on the 2012 charges, Marshall could face up to 24 years in prison and $1 million in fines on the racketeering charges, and up to 12 years in prison and $750,000 on the theft charges. He was free on $50,000 bond before the 2012 charges were dismissed.
Jeff Pagliuca, Marshall's Denver-based attorney, said he will appeal the ruling to the Colorado Supreme Court.
The 2012 theft charges involve two downtown office buildings developed by Marshall and LandCo Equity Partners to house the USOC's headquarters, and a third building for Olympic-related sports organizations. Marshall allegedly diverted funds from $2 million in grants that the El Pomar Foundation made to the city of Colorado Springs, according to an arrest warrant from the 4th Judicial District Attorney's Office on the 2012 charges.
The 2009 charges involved a series of transactions that LandCo and Marshall completed with 11 investors on proposed or completed development projects in El Paso County. He was charged with stealing $3.1 million from investors, conspiring with LandCo President James Brodie to steal from them and committing securities fraud by failing to tell investors about two business bankruptcies in his past.
Marshall was acquitted of all charges after a three-week trial in one of the highest-profile local white-collar criminal cases in recent years. Charges against Brodie were dismissed.
According to the Colorado Secretary of State's office, LandCo has been inactive since 2010.
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