Woodland Park resident Richard Roop began serving a 60-day jail sentence Tuesday for contempt of court following a hearing in Denver District Court, according to a news release sent by the Colorado Department of Regulatory Agencies (DORA).
The sentence, handed down by District Court Judge Michael Martinez, followed a motion for contempt filed Oct. 22 by Colorado Securities Commissioner Gerald Rome. The contempt proceedings mark the latest in a string of securities law transgressions and court order violations allegedly committed by Roop since 2008, the release said.
Roop has not held a license to sell or recommend securities since his mortgage broker-dealer license was summarily suspended in 2012 after he refused to provide records or appear at a hearing held before the Colorado Securities Board.
In spite of the license revocation, the Division of Securities, a part of DORA, has alleged through previous complaints that Roop continued to sell promissory notes to investors as an unlicensed broker. The funds from these sales were used to purchase distressed real estate properties without proper disclosure of risk to investors and to pay off earlier investors similar to a Ponzi scheme.
Following a complaint for injunctive and other relief made by the state, Roop and his company, Bottom Line Results, were permanently barred from the securities industry in March 2015. Roop and the company were directed to cease selling or offering to sell unregistered securities in Colorado. In addition to the injunction, a receiver was appointed to collect all assets related to the conduct of Bottom Line Results’ entities.
Records collected by the receiver in pursuit of these assets revealed that in May this year, Roop violated the injunction and executed a note modification for one of his longtime investors. The modification extended the maturity date of the note and increased the balance by nearly $30,000 along with changing payment amounts and the applicable interest rate.
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According to Commissioner Rome, Roop directly and willfully violated the permanent injunction and violated the receivership order in place to collect all assets from his business, the release said.
Despite Roop’s claims during the hearing that he did not know he was violating the order, Judge Martinez stated to Roop that he tends to “interpret orders to his own benefit,” and that the Commissioner, represented by Jennifer Hunt of the Colorado Attorney General’s Office, established contempt beyond a reasonable doubt.
“I appreciate Assistant Attorney General Hunt’s diligent work in pursuing an appropriate sanction for defendant Roop’s willful disregard of the terms of the injunction,” said Rome.