A federal judge clarified last week that businessman and former Republican statewide candidate Brian Watson will need to surmount a higher hurdle in proving his claim that a party guest’s alleged description of him as a “criminal” amounted to defamation.

Watson was the GOP nominee for Colorado treasurer in 2018 and a 2012 candidate for the state House of Representatives. He was unsuccessful in his runs for office.

In 2024, Watson sued Laura Elsaden for defamation. He alleged that Elsaden, at a July 2024 dance party at the luxury C Lazy U Ranch in Granby, stated that Watson was a “criminal” who had relations with prostitutes. Elsaden also allegedly called Watson’s wife, Tiffany Mai, a prostitute. Mai separately sued Elsaden for defamation and the parties settled earlier this year.

Watson’s defamation claim required him to show that Elsaden made a false and damaging statement to a third party. However, if Watson qualified as a “public figure,” he would also need to demonstrate that Elsaden spoke with “actual malice” — meaning without regard to whether her comments were false.

In May 2025, Chief U.S. Magistrate Judge Scott T. Varholak allowed Elsaden to seek a ruling about Watson’s status as a public figure. The evidence showed that:

• Watson founded a large real estate, development, investment, and asset management company.
• He called the company an “empire,” with more than $1.3 billion in assets.
• Watson started a foundation and had a YouTube channel with more than 400 videos.
• He ran for office twice in Colorado.
• He authored two books.
• Watson appeared in TV interviews and as a commentator.
• The FBI searched Watson’s home in 2020 and the U.S. Securities and Exchange Commission sued him for alleged securities fraud, which both received media attention.
• Watson broadcast statements about the FBI search.
• In February, a federal jury in Denver found Watson civilly liable for securities fraud.

“The undisputed evidence shows that, for decades, he has deliberately cultivated a highly visible persona across business, social, philanthropic, political, and media arenas, elevating himself into a hyper-Public Figure, both in Colorado and nationally,” wrote T. Markus Funk, an attorney for Elsaden. “The exceptional volume of media coverage and self-promotion spanning over a decade conclusively seal Mr. Watson’s Public Figure fate.”

“Since 2020, Watson has shunned the spotlight, turning away from the publicity that characterized the previous decade to focus instead on his family, personal pursuits, and rebuilding his real estate business,” countered Watson’s attorneys. “Long gone are the days of talk show appearances and promotional events. Watson has not appeared on any podcast or news or entertainment program since early 2020. Watson ceased writing, both in longform and shortform, by the end of 2020.”

Varholak, in a July 20 order, first examined whether Watson was an “all-purpose” public figure, meaning a person with “pervasive fame or notoriety” that made him a public figure in all aspects of his life. Watson was well known, acknowledged Varholak, but his fame was not all-purpose.

“While Plaintiff was undoubtedly prominent, prominence alone is not synonymous with the celebrity-like or ubiquitous public stature that renders virtually every aspect of an individual’s life a matter of public concern,” Varholak wrote.

However, he concluded Watson became a “limited-purpose” public figure on the question of his alleged criminality by broadcasting his thoughts about the FBI’s investigation before and after the Granby dance party.

“By continuing to engage publicly with the media and through public statements concerning the litigation and investigations, Plaintiff voluntarily assumed a position of prominence within that controversy,” Varholak wrote.

As a result of his public-figure status, Watson would need to prove Elsaden acted with actual malice when she allegedly labeled him a criminal. Watson would not need to satisfy that higher standard for Elsaden’s alleged comment about prostitutes, Varholak added.

The case is Watson v. Elsaden.