Developer barred from taking investor cash in Colorado for five years

Joseph Libkey Facebook

The state sued Joseph Libkey Jr., 36, for securities fraud in March.
(Facebook)

A developer who is being sued by the state for allegedly tricking investors out of $2.3 million has consented to a five-year ban on soliciting investments in Colorado.

Joseph Libkey Jr., 36, agreed to the ban Oct. 6 in a deal with the Attorney General’s Office.

Libkey was sued in March by Colorado Securities Commissioner Tung Chan, who sought to ban him from selling investments in the state and also recover restitution for his investors. With that first matter resolved, the case will now move ahead with a focus on the second.

“The commissioner and the defendant believe it is in their best interests to enter this stipulation to reduce the cost of the litigation,” Chan and Libkey’s agreement said of the ban.

Their agreement emphasizes that Libkey is not admitting or denying wrongdoing at this time. But it bars him from making “any public statement … directly or indirectly creating the impression that the (lawsuit) filed by the commissioner is without factual basis.”

Chan accuses Libkey of committing securities fraud between 2019 and 2022, first by passing off someone else’s resume as his own in order to solicit a $400,000 investment. Chan said he also told that investor and others they would receive a 10 percent profit from his development of Roth Park Place, a condo building in Federal Heights. They did not.

The next year, Libkey started a second company and allegedly sent three memos, each different from the other, to prospective real estate investors. Those memos failed to disclose that lawsuits and liens had been filed against Roth Park Place and told investors they could double their money in a year, Chan said. Nine investors sent $770,000 and lost it all.

Finally, in late 2021, Libkey started a company called BP Antlers OZ LLC. By the following May, three investors who had not been told about defaults, lawsuits and liens surrounding Libkey’s other projects invested $1.15 million in his apartment-conversion idea in Colorado Springs, Chan’s lawsuit alleges. She doesn’t say if the investors lost their money.

Libkey’s plan was to convert the historic Antlers Hotel in downtown Colorado Springs into apartments, according to the Colorado Springs Gazette. That plan, first announced publicly last August, was abandoned in December. The Antlers, which Libkey doesn’t own, will remain a hotel.

Libkey is represented by the lawyers Aloke Chakravarty and Timothy Scale at Snell & Wilmer in Denver. They did not respond to a request to comment on the five-year ban.

Chan is represented by Assistant Attorneys General Robert Finke and Brianna Tancher. They also did not respond to a request to discuss the ban and the Libkey case.

Joseph Libkey Facebook

The state sued Joseph Libkey Jr., 36, for securities fraud in March.
(Facebook)

A developer who is being sued by the state for allegedly tricking investors out of $2.3 million has consented to a five-year ban on soliciting investments in Colorado.

Joseph Libkey Jr., 36, agreed to the ban Oct. 6 in a deal with the Attorney General’s Office.

Libkey was sued in March by Colorado Securities Commissioner Tung Chan, who sought to ban him from selling investments in the state and also recover restitution for his investors. With that first matter resolved, the case will now move ahead with a focus on the second.

“The commissioner and the defendant believe it is in their best interests to enter this stipulation to reduce the cost of the litigation,” Chan and Libkey’s agreement said of the ban.

Their agreement emphasizes that Libkey is not admitting or denying wrongdoing at this time. But it bars him from making “any public statement … directly or indirectly creating the impression that the (lawsuit) filed by the commissioner is without factual basis.”

Chan accuses Libkey of committing securities fraud between 2019 and 2022, first by passing off someone else’s resume as his own in order to solicit a $400,000 investment. Chan said he also told that investor and others they would receive a 10 percent profit from his development of Roth Park Place, a condo building in Federal Heights. They did not.

The next year, Libkey started a second company and allegedly sent three memos, each different from the other, to prospective real estate investors. Those memos failed to disclose that lawsuits and liens had been filed against Roth Park Place and told investors they could double their money in a year, Chan said. Nine investors sent $770,000 and lost it all.

Finally, in late 2021, Libkey started a company called BP Antlers OZ LLC. By the following May, three investors who had not been told about defaults, lawsuits and liens surrounding Libkey’s other projects invested $1.15 million in his apartment-conversion idea in Colorado Springs, Chan’s lawsuit alleges. She doesn’t say if the investors lost their money.

Libkey’s plan was to convert the historic Antlers Hotel in downtown Colorado Springs into apartments, according to the Colorado Springs Gazette. That plan, first announced publicly last August, was abandoned in December. The Antlers, which Libkey doesn’t own, will remain a hotel.

Libkey is represented by the lawyers Aloke Chakravarty and Timothy Scale at Snell & Wilmer in Denver. They did not respond to a request to comment on the five-year ban.

Chan is represented by Assistant Attorneys General Robert Finke and Brianna Tancher. They also did not respond to a request to discuss the ban and the Libkey case.

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