Boulder land developer permanently barred from state securities field
DENVER (April 13, 2015) – Colorado Securities Commissioner Gerald Rome announced Mondaythat John C. Ball of Boulder has been permanently barred from all future participation in the Colorado securities market. This announcement came on the heels of an order for permanent injunction granted by District Court Judge Michael Vellejos.
The civil action, brought by the Attorney General’s office on behalf of the commissioner, sought an injunction against Ball on the grounds that he, through his company The Resort at Pikes Peak, LLC, violated three areas of the Colorado Securities Act by fraudulently soliciting and selling investments for a land development project. Ball has been on the Securities Division’s radar since 2010, when he was issued a Cease and Desist order by the commissioner for failing to disclose material facts about an investment to potential buyers.
Specifically, Ball claimed to be in the process of purchasing land on Pikes Peak for a ski resort, and told investors he had a contract for the land. But, as Judge Vellejos found in his order, Ball failed to disclose that the land was subject to a lien and right of first refusal, which violates the anti-fraud provisions of the Securities Act. Following the Cease and Desist order, Ball was uncooperative with the Division, failing to provide requested documents or adhere to deadlines set by the court.
It was then discovered that after the Cease and Desist order had been issued, Ball emailed several hundred people seeking investors to purchase interests in the Pikes Peak enterprise, and again failed to disclose necessary information, most importantly the fact that the Cease and Desist order had been issued. The commissioner’s case against Ball further alleged that throughout the time Ball was soliciting and selling securities through the Resort at Pikes Peak, neither the promissory notes nor the direct investments in his company were lawfully registered, as required by the state.
Rome stated of the action, “Mr. Ball’s consistent lack of compliance with the Securities Act, manifesting itself most egregiously in the form of misrepresenting to potential investors his lack of ownership of the Pikes Peak property, and total disregard of the Cease and Desist order, prompted this action. Permanent exclusion from the securities industry is the only acceptable outcome.”
The Division of Securities can be reached at (303) 894-2320.
Division of Securities