A Woodland Park man who had been told to stay out of the securities and mortgage business was sent to jail Tuesday for violating court orders, according to the Colorado Department of Regulatory Agencies.
Richard Roop was sentenced to 60 days in jail for contempt of court by Denver District Court Judge Michael Martinez. State Securities Commissioner Gerald Rome filed a motion Oct. 22 accusing Roop of contempt.
Roop has not been licensed to sell or recommend securities since his mortgage broker-dealer license was suspended in 2012 after he refused to provide records or appear at a hearing before the Colorado Securities Board, officials said Tuesday.
State regulatory officials allege that Roop continued to sell promissory notes despite his license revocation and that the funds from these sales were used to buy distressed real estate properties without proper disclosure of risk to investors, as well as to pay off earlier investors, similar to a Ponzi scheme.
In March, Roop and his company, Bottom Line Results, were permanently barred from the securities industry and directed to cease selling unregistered securities in Colorado.
A receiver appointed to collect all records and assets related to Bottom Line Results disclosed that in May, Roop violated the March injunction by executing a note modification for one of his longtime investors.
In the March court action, officials said Roop had raised more than $1.6 million from at least 25 investors, often persuading them to transfer funds from their retirement accounts with promises of annual returns of 8 percent to 10 percent.
Roop insisted in the spring that he was not violating state securities laws because the investments are structured as loans on properties he and his company have acquired and that such transactions are exempt from the securities law's registration and licensing requirements.
But on Tuesday, Judge Martinez stated to Roop that he tends to "interpret orders to his own benefit" and that Rome had established contempt beyond a reasonable doubt.