Arapahoe County game fraudster sentenced to four years in prison
DENVER (May 7, 2015) – Ronald Gollehon, age 65, of Arapahoe County received a four year prison sentence and five years of mandatory parole at a sentencing hearing on Tuesday, May 5, 2015. Gollehon, who pleaded guilty to one count of securities fraud on February 23 of this year, was also ordered to pay $889,000 in restitution. Indicted by a grand jury in November 2013, Gollehon was accused of stealing approximately $900,000 from more than 100 investors across the country, the majority being Colorado residents.
The fraud involved Gollehon’s company, Open Source Games, Inc., which was allegedly in the process of developing an online game. Gollehon offered investors the opportunity to purchase shares of the company and promised that the launch of the game would result in high returns for investors. Gollehon allegedly did not disclose that the Securities and Exchange Commission obtained an order of permanent injunction against him in 1978 or his various past and pending bankruptcies to investors.
“In reality, Gollehon put very little of the invested funds toward the company, instead spending the money on personal expenses,” said Colorado Securities Commissioner Gerald Rome.
Rome cautions investors regularly that a quick phone call to the Colorado Division of Securities, or taking five minutes to check out a potential investment or professional online before handing over their money, often can prevent both hardship and heartache.
“Mr. Gollehon, like so many fraudsters we see, had never been licensed as a broker with the state, and the stocks he was selling were unregistered,” noted Rome. “A small investment of time up front could result in saving you trouble or help prevent someone vulnerable from being victimized by the same person.”
The Colorado Division of Securities appreciates the assistance of the United States Securities and Exchange Commission in bringing the case to the Division’s attention. Gollehon was prosecuted by the Securities Fraud Unit of the Colorado Attorney General’s Office. “I am dedicated to rooting out and holding accountable the financial fraudsters that prey on our citizens,” commented Colorado Attorney General Cynthia Coffman. “Investment schemes that operate as a fraud on Colorado citizens will be vigorously prosecuted by this Office. We sincerely appreciate the fine work that the Division of Securities and Securities and Exchange Commission put into this investigation.”
To check whether an investment professional or offered security is properly compliant with state laws, call (303) 894-2320.
Division of Securities