Woodland Park resident jailed following securities law violations

Richard Roop sentenced to 60 days in jail for contempt of court

DENVER (Nov. 10, 2015) – Richard Roop, a resident of Woodland Park, Colorado, was immediately remanded to jail to serve a sentence of 60 days for contempt of court following a hearing held today in Denver District Court.

The sentence, handed down by District Court Judge Michael Martinez, followed a motion for contempt filed October 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.

Roop has not held a license to sell or recommend securities since his mortgage broker-dealer license was summarily suspended in 2012 following his refusal 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 the Department of Regulatory Agencies (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 Commissioner, 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 of 2015, 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.

According to the Commissioner, the defendant directly and willfully violated the permanent injunction and violated the receivership order in place to collect all assets from the defendant’s business.

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,” stated Commissioner Rome. “Defendants should understand that the civil injunctions that we obtain directing them to stop violating the Colorado Securities Act are not just a suggestion. There are real consequences for ignoring court orders.”

To report suspicious activity or file a complaint regarding the offering or sale of securities in Colorado, you can contact the Division of Securities at (303) 894-2320. 


Media Contact:
Jillian Sarmo
Division of Securities
p: 303-894-2878