Press Release: Complaint Filed Against Lakewood, Colorado, Man for AI-related Investment Scheme

DENVER - November 6, 2026 - Colorado Securities Commissioner Tung Chan filed civil fraud charges against Michael Cole and Sage Income LLC of Lakewood, Colorado, for securities fraud and unlicensed activities in violation of the Colorado Securities Act.

According to the complaint, Cole allegedly solicited $5.2 million from 14 investors through promissory notes in his company, Sage Income LLC. The company claimed to use proprietary AI software to trade securities that would generate higher than average market returns between 9%-15% yearly.

The complaint alleged that, in fact, Sage had negative rates of return from November 2019 through December 2024. Allegedly, Cole represented to investors that the AI software had historically been successful, but that was not true. The complaint further alleged that Cole admitted to investigators that investor funds had been used to develop and train the AI software through trial and error. Additionally, it was alleged that bank records revealed Cole used investor funds to pay interest to earlier noteholders in a Ponzi-like scheme.

Cole is not licensed to offer or sell securities in Colorado.

"We believe that Mr. Cole used the promise of AI investing to defraud Coloradans, including his own brother, parents and colleagues," said Commissioner Chan. "We have seen a lot of the same old scams that mask themselves behind the excitement of new technology like AI. We recommend that investors slow down and research before investing and remember that if it's too good to be true, it usually is."

If you or someone you know has invested in Sage Income LLC, please contact the Colorado Division of Securities at [email protected] or 303-894-2320. You can also file a complaint on the Division's website.