At a moment when slow home sales have owners looking at remodeling, M3 Designs described itself as a design-build firm that “prioritizes sustainability, economic improvement, and efficient construction … advancing urbanism and community development.”

But last month, a grand jury charged that M3, also known as Minimal Modular Modern Designs, was actually a take-the-money-and-run operation, and indicted its principal and an associate on 34 felony counts of theft that left victims across the Denver-Boulder area.

EARNED $1 MILLION ON FAILED PROJECTS

According to the indictment, Major T. Morgan III, who was indicted last month in Boulder County District Court, gleaned more than a million dollars in 2023 and 2024 while his firm took deposits ranging from $5,000 to $1 million from dozens of customers for projects never completed.

The filing stated that some projects were for faulty or included minimal work, sometimes leaving additional damage to the property.

Morgan was also accused of using proceeds to “support his and his then-fiancée, Destiny Ruden’s, lavish lifestyle.”

The papers further allege that Morgan failed to return customer funds for incomplete, abandoned, or defective work, and committed fraud and tax evasion. Victims, according to the documents, were situated throughout the greater Denver area from Elbert County to Boulder County.

Also indicted was Dillon Rosenbrook, named as an associate of Morgan’s, who is alleged to have assisted and to have earned over $70,000 from M3 Designs. Several other unindicted parties were mentioned, including Ruden, Kwon Atlas, and Michael West.

Colorado Attorney General Phil Weiser called the alleged crimes a pattern of deception that left homeowners with significant financial losses.

“Coloradans should be able to trust that contractors will use their money as required by law, and those who fail to do so will face consequences,” Weiser said in a statement accompanying the indictment’s release.

The indictment released to the press Tuesday refers to the alleged scheme as racketeering; and lists 35 residents who were alleged victims, in addition to some commercial entities, a bank, and insurance companies.

$90,000 SWIMMING POOL

The patterns of the crimes are similar, involving bids and contracts to work on home repairs and improvements, followed by large deposits, and then a failure to complete the work and a notice of personal bankruptcy. 

A single-family homeowner in Denver, for instance, was allegedly approached by Rosenbrook, who arranged a meeting with Morgan on a proposal to build a swimming pool. The owner signed a contract with “Model 3D” for $90,869.00 and wrote a check for $28,000 as a down payment.

Rosenbrook, the indictment said, then informed the owner that he was leaving the state “for personal reasons and was handing the project off to Morgan, who subsequently also left the state of Colorado and declared personal bankruptcy.”

According to the indictment, no work was completed on the project and no refund was issued.

Neither Morgan nor Rosenbrook declared or paid personal income taxes on the receipts from M3 Designs, according to the documents.

Charges include violations of the Colorado Organized Crime Control Act, counts of felony theft, tax evasion, filing false tax returns, money laundering and attempting to influence a public servant.

Morgan is charged with 29 of the 34 counts and remains in custody in Boulder. Rosenbrook is charged with 14 counts and was released on bond.