NOTE: Here’s a different take on last Monday’s blog entry… if you’re wondering who the actual players are in this seemingly sorted affair, read on:

No doubt about it, investors involved with the Mile High Capital Group (Denver, Colorado) lost millions of dollars. They put down earnest money on residential duplex properties, most of which were never built. The Mile High Capital Group sold a product that it failed to deliver, and investors lost a lot of money. Rick Dryer, founder and former CEO of Mile High is currently under indictment on 67 felony charges ranging from theft to securities fraud for his involvement in an alleged real estate Ponzi scheme.

Dryer has pleaded not guilty on all of the charges, and is scheduled to appear in Denver District Court in February of 2008. Clearly, someone is guilty of wrongdoing here, but which (if any) laws were broken, by whom, and for what purpose are still a mystery.

Shortly after my book “Protect Yourself from Real Estate and Mortgage Fraud” (co-authored with attorney and noted mortgage fraud expert Rachel Dollar) hit the bookstores, Kaplan’s public relations department contacted me. They informed me of an opportunity to promote the book via a talk show called “Real Estate Wealth, Myths Facts and Strategies”, a spin-off of Real Estate Dialogues with Rick Dryer and Professor Gary Eldred, the best selling author and head of curriculum at Trump University Real Estate Dialogues with Rick Dryer and Professor Gary Eldred. I was shocked to learn of the indictments against Dryer when I “googled” him prior to the show. I also learned that he had moved to North Carolina where he was hosting his popular “Right Place Right Time Real Estate Investment Strategies” and working as a consultant for a company called Convergent Acquisitions and Development Inc. in Charlotte, among others. He also has a home in Colorado.

I had known of Rick Dryer and his seminars for some time. I also knew of his very public record of accurate predictions as to emerging markets and trends. If there is anyone whose knowledge of real estate would seem to empower investors to earn millions in real estate, Rick Dryer would be such a person. So when I heard the rumors about millions stolen from Mile High investors, I was stunned. After all, why would a successful real estate investor, a multi-millionaire, need to steal money?

I discovered that Convergent has two things in common with Mile High. First, it acquires rental properties for investors, which is basically the same service that Mile High offered investors. Secondly, it had had great success in following Rick Dryer’s “Right Place Right Time” principles.

I called Convergent president Nicolas “Nick” Sabardin (pictured on the right) to find out more about what was going on and about Dryer’s involvement with the company. Sabardin was very cooperative; he believed anyone who looks into this will help in clearing Dryer’s name. He welcomed my interest, and thought an independent analysis would be fantastic. He offered to help in anyway he could. Shortly thereafter, my assistant and I flew to Charlotte to meet with Sabardin.

After a couple meetings, Sabardin aroused my curiosity. He and his company have an impeccable reputation. He is a Sorbonne graduate, a former airline pilot, and an MBA. He had had his lawyers do a complete background on Dryer before hiring him. What he told me, which I confirmed, made me had become fascinated with the Mile High case.

Here was a company that had over a quarter billion in sales and 45 million in cash flow, and records showed that Dryer was on the receiving end of only $50,000 in cash. If this was a case of real estate and mortgage fraud, someone was doing an excellent job of laundering the money. Where did all that money go? Why did Dryer leave Mile High? And why were clients like Convergent enjoying such success? Is Rick Dryer a criminal mastermind or the fall guy for clever con artists who used him as an unwitting accomplice, as Mr. Sabardin believes?

Over the course of the next several months, I will be independently reviewing the Mile High case myself and posting my findings, most every Monday, under the “Mile High Monday” header here on FlippingFrenzy.com. Through my posts, I hope we will all be able to discover the truth about Mile High Capital Group. From its very beginnings, through the trial, to the very end, when the judge or jury reads the verdicts… if it ever gets to trial. I invite you to tune in to what may be the unveiling of one of the most complicated and sinister corporate real estate cons of our times. But is Rick Dryer mastermind or victim? Stay tuned.

No doubt about it, investors involved with one particular Rocky Mountain-based real estate investment firm lost millions of dollars. They put down earnest money on residential duplex properties, most of which were never built. The firm sold a product that it failed to deliver, and investors lost a lot of money. The firm’s founder and former CEO is currently under indictment on nearly 70 felony charges ranging from theft to securities fraud for his involvement in an alleged real estate Ponzi scheme.

The Rocky Mountain-based firm’s founder and former CEO has pleaded not guilty on all of the charges and is scheduled to appear in court in early 2008. Clearly, someone is guilty of wrongdoing here, but which (if any) laws were broken, by whom, and for what purpose are still a mystery.

Shortly after my book Protect Yourself from Real Estate and Mortgage Fraud (co-authored with attorney Rachel Dollar) hit the bookstores, my publisher’s public relations director contacted me. She informed me of an opportunity to promote the book via a talk show about real estate investing that was a spin-off of another show co-hosted by the firm’s founder and former CEO. When I “googled” his name prior to the show, I was shocked to learn of the indictments against him.

During my research, I also learned that he had moved to North Carolina where he was hosting his own popular real estate investment seminar and working for a real estate company in Charlotte as well as for other companies.

I had known of this former CEO and his seminars for some time. I also knew of his very public record of accurate predictions as to emerging markets and trends. If there is anyone whose knowledge of real estate would seem to empower investors to earn millions, this guy would be such a person. So when I heard the rumors about millions stolen from his company’s investors, I was stunned. After all, why would a successful real estate investor, a multi-millionaire, need to steal money?

I did an informative and interesting interview with the former CEO and his co-host, which is offered by podcast to subscribers. The show was scheduled to debut on XM Satellite, too, but XM pulled the plug on the show after receiving calls from a reporter. That apparent violation of its contract will be the subject of another column.

As I was checking into the background of the new company for which the former CEO was working as a consultant, I discovered that it has two things in common with the Rocky Mountain-based real estate investment company. First, it acquires rental properties for investors, which is basically the same service that the Rocky Mountain-based firm offered investors. Secondly, it had had great success in following the former CEO’s investment principles.

I called the southeastern-based company’s president to find out more about what was going on and about the former CEO’s involvement with the new company. The company’s president was very cooperative; he believed anyone who looks into this will help in clearing the former CEO’s name. He welcomed my interest, and thought an independent analysis would be fantastic. He offered to help in any way he could. Shortly thereafter, my assistant and I flew to Charlotte to meet with him.

After a couple meetings, the new company’s president had aroused my curiosity. He and his company have an impeccable reputation. He is a Sorbonne graduate, a former airline pilot, and an MBA. He had had his lawyers do a complete background on the former CEO before hiring him. What he told me, which I confirmed, made me become fascinated with the Rocky Mountain case.

The Rock Mountain-based firm had over a quarter billion in sales and $45 million in cash flow, and records showed that its founder and former CEO was on the receiving end of only $50,000 in cash. If this was a case of real estate and mortgage fraud, someone was doing an excellent job of laundering the money. Where did all that money go? Why did the founder leave his company? And why were clients with the new company enjoying such success? Is this former CEO a criminal mastermind or the fall guy for clever con artists who used him as an unwitting accomplice, as the president of the new company believes?

Over the course of the next several months, I will be independently reviewing the case myself and posting my findings, most every Monday, under the “Rocky Mountain Monday” header here on FlippingFrenzy.com. Through my posts, I hope we will all be able to discover the truth about Rocky Mountain-based firm and its founder and former CEO–from the company’s very beginnings, through the trial, to the very end, when the judge or jury reads the verdicts… if it ever gets to trial.

I invite you to tune in to what may be the unveiling of one of the most complicated and sinister corporate real estate cons of our times.