Denver - November 12, 2024 - On November 7, 2024, Colorado Securities Commissioner Tung Chan filed civil fraud charges and a motion for a temporary restraining order (TRO motion) and an asset freeze against Michael Graham, Sebastian Partners LLC, Sebastiane Partners LLC, Gravitas Qualified Opportunity Zone Fund I LLC ("GQOZF") and others, many entities of which were allegedly controlled by Graham in an elaborate real estate investment scheme. Later that day, the Denver District Court granted the TRO motion and asset freeze and set a hearing to review the motion for November 21, 2024.

Graham allegedly sold investors interest in his private fund, GQOZF, that he said was dedicated to long-term property investments in economically distressed communities. He allegedly told investors that his fund qualified for the federal Qualified Opportunity Zone program wherein the fund would receive tax benefits for investing in property in struggling communities. Graham allegedly raised more than $1.1 million from eight investors from May 2019 to December 2021.

According to the complaint, Graham commingled investor funds with other businesses tied to him and used the money for personal purposes. Graham also allegedly transferred all assets out of GQOZF, which meant the fund would not benefit distressed communities and would not qualify for the federal tax program, as advertised to investors. The complaint further alleges that he secretly transferred the titles of two of the investment properties to himself and took out personal loans against the properties.

The complaint further states that Graham failed to disclose to investors his checkered past including a recent court order against him for $1 million in damages related to previous real estate projects.

"Mr. Graham's investment scheme to defraud Colorado investors and enrich himself is particularly odious in misusing the promise of federal programs meant to help struggling communities," said Commissioner Chan.

If you or someone you know has been scammed, file a complaint with the Division of Securities here.

If you have information regarding Michael Graham or any of the involved entities, please contact the Colorado Division of Securities at [email protected] or 303-894-2320.

Access the complaint here.

About DORA and the Division of Securities

DORA is the state's umbrella regulatory agency, charged with managing licensing and registration for multiple professions and businesses, implementing balanced regulation for Colorado industries and protecting consumers. Our nearly 600 employees are dedicated to preserving the integrity of the marketplace and promoting a fair and competitive business environment throughout Colorado.

The Division of Securities exists to protect investors and maintain confidence in the securities market, while avoiding unreasonable burdens on the marketplace by licensing securities professionals, enforcing securities law violations and helping Coloradans become more informed investors. Visit securities.colorado.gov to learn more.