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Colorado authorities shut down low-income housing developer

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Colorado authorities shut down low-income housing developer


The Colorado Division of Securities is pursuing legal action against a man whom it claims deceived investors and used the ownership of federally supported low-income housing projects to line his own pockets. 

Securities Commissioner Tung Chan announced its civil court filings against Michael Dale Graham, 68, on Nov. 12. 

Chan’s office filed civil fraud charges against Graham, and also asked for a temporary restraining order and freezing of Graham’s assets and his companies’. A Denver district court judge immediately granted both. Since then, two court dates to review the those orders have canceled; a third is scheduled for mid-January.

Graham operates Sebastian Partners LLC, Sebastiane Partners LLC, and Gravitas Qualified Opportunity Zone Fund I LLC (“GQOZF”), all of which were controlled by Graham during his “elaborate real estate investment scheme,” as described by the securities office in a case document.

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The filing states Graham collected more than $1.1 million from eight investors to purchase three adjacent homes in Aurora. The Denver-based Gravitas fund and its investors purportedly qualified for the federal Qualified Opportunity Zone (QOZ) program with the homes. Qualified Opportunity Zones were created by the Tax Cuts and Jobs Act passed by Congress in 2017. The zones encouraged growth in low-income communities by offering tax benefits to investors, namely reductions in capital gains taxes on developed properties.

A file photo of a suburban housing development in the Denver metro area. 

Paul Souders/WorldFoto & Getty Images


Graham formed Gravitas in early 2019 and purchased the three homes located in the 21000 block of E. 60th Avenue two years later. He quickly sold one of them with notifying investors, according to the case document. While managing the other two, Graham and Gravitas transferred the fund’s assets and never operated within QOZ guidelines to the benefit of its investors or the community, according to the state. 

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Gravitas also transferred the titles for the two properties to Graham privately. As their owner, Graham obtained undocumented loans from friends totaling almost $600,000. The two loans used the two properties as security. 

Gravitas investors were never informed of the two loans, according to the case document. Also, Gravitas never sent its investors year-end tax reports, the securities office alleges. 

Graham used the proceeds of the loans for personal use. No specific details were provided about those uses.

“Effectively, Graham used Gravitas as his personal piggy bank,” as stated in the case document, “claiming both funds and properties as his own. Graham never told investors about the risks associated with transferring title to himself. On September 1, 2023, he sent a letter to investors, stating that the properties ‘we own’ are doing well and generating growth due to record-breaking home appreciation. But Gravitas no longer owned the properties.

“Gravitas no longer had assets at all.” 

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Furthermore, the securities office said Graham failed to notify investors of recent court orders against him in Colorado and California. In total, Graham was ordered to pay more than $1 million in damages related to previous real estate projects.

Graham’s most recent residence is in Reno, Nev., according to an online search of public records. He evidently has previously lived in Santa Monica, Calif., and Greenwood Village.

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Douglas County, Colorado, celebrates Independence Day without fireworks

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Douglas County, Colorado, celebrates Independence Day without fireworks


Douglas County announced that it enacted Stage 2 Fire Restrictions on Thursday, canceling all fireworks shows, including professional shows, in the county. Instead, community members celebrated the United States’ 250th birthday at the Star Spangled Birthday Bash Concert and drone show.



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MAP: Where Colorado wildfires are burning

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MAP: Where Colorado wildfires are burning


Multiple uncontained wildfires across Colorado have scorched over 100,000 acres since Monday. Red flag fire conditions on Tuesday and Wednesday, including low humidity and high winds, contributed to the blazes growth and, in some cases, made air support difficult and dangerous. Weather forecasts promise more “critical fire weather” throughout the week, according to the National […]



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Colorado governor fires two clemency board members who spoke out about Tina Peters’ commutation | CNN Politics

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Colorado governor fires two clemency board members who spoke out about Tina Peters’ commutation | CNN Politics


Colorado Gov. Jared Polis on Wednesday fired two members of the state’s clemency board after they spoke out against his controversial decision to grant clemency to Tina Peters – an election denier whose sentence was cut in half by the outgoing Democratic governor in May.

Azra Taslimi and Hannah Seigel Proff told CNN they were fired after speaking out publicly, including in a New York Times article in June, in which they revealed secret details about the clemency process and criticized the governor for overruling the board. They told the Times the clemency board twice voted unanimously behind closed doors to reject Peters’ application for an early release from prison.

Polis’ decision in May to release Peters came after President Donald Trump waged a long pressure campaign against Colorado to free her. Peters – who was released from prison in June – was the last Trump ally still in prison for 2020 election-related crimes.

In letters to Taslimi and Proff obtained by CNN, Polis said the two members breached confidentiality by speaking out.

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“Specifically, you breached the required duty of confidentiality by publicly divulging Board members’ votes pertaining to a clemency application which you obtained only through your official position on this Board,” Polis wrote in the letters.

The two women told CNN they are disappointed they were fired — but not surprised.

“I’m not upset that he overrode our decision. I think what’s upsetting is that we understand why he did it, which is that you know Tina Peters had a powerful ally behind her,” Taslimi said. “She had political pressure applied in her name, and the governor capitulated to it, and that is what makes this unfair, and that is why I call it selective mercy, because you are giving her the benefit that you don’t give or apply to anyone else.”

Eric Maruyama, a spokesperson for the governor, told CNN in a statement Wednesday, “Publicly disclosing board recommendations and how members vote on any case threatens the credibility of the board, colors future deliberations by the board and breaks clearly stated confidentiality policy articulated in the Executive Order which establishes this board.”

Proff, who served on the board for nearly eight years, said she understood the state rules around the closed-door clemency recommendation process “more as the confidentiality to protect the people who apply for clemency, not to protect the governor.”

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The governor primarily justified his decision to release Peters by citing a recent Colorado appeals court ruling that found the trial judge violated Peters’ First Amendment rights by improperly punishing her for her protected speech about the 2020 election.

“It was a straightforward decision because, after reviewing the facts, and reading the Appeals Court decision, I concluded that her sentence was simply too long,” Polis wrote in a Substack post, where he condemned Peters’ crimes.

Now that they’ve been terminated, Proff worries there will be less transparency.

“I worry now that we’ve been terminated from the board what comes of this is that people are less likely to speak out … that politicians will go unchecked on these sort of decisions,” Proff said.

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