Dragul arraignment postponed to July 6 for alleged securities fraud

The Incredible Wine & Spirits store on East Arapahoe Road in Englewood is involved in the case. (Thomas Gounley)

Gary Dragul’s next day in court will be July 6 after an arraignment scheduled for June 8 was moved to the later date in a brief hearing Friday at the Arapahoe County Courthouse.

Dragul was indicted April 17 on nine felony counts of securities fraud.

In the indictment, Colorado Attorney General Cynthia Coffman identified Dragul as president of GDA Real Estate Services, which used investor money to buy and manage shopping centers and other commercial real estate.

The company was part-owner of Writer Square until 2013.

Coffman said that in addition to selling membership interests in numerous LLCs, in 2007, Dragul and GDA also offered investors promissory notes with varying rates and durations, despite failing to register the promissory notes and never being licensed to sell securities.

Coffman also said that, while soliciting new investors in 2013, Dragul failed to disclose debts and civil lawsuits involving former investors.

The attorney general also alleges that Dragul used investor funds for personal use, including payments to Las Vegas casinos, credit card companies, liquor stores and for travel on a private jet.

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