Woodland Park resident permanently barred from Colorado securities industry
DENVER — Gerald Rome, the commissioner for the Colorado Division of Securities, a part of the Department of Regulatory Agencies (DORA), announced today that a settlement has been reached in the case of Gerald Rome v. Richard Roop and Bottom Line Results, Inc. The settlement was reached following successful litigation by the Colorado Attorney General’s office in both contempt proceedings and a motion for partial summary judgment against the defendants. The latter resulted in an order of the court that permanently bars Roop individually and his company, Bottom Line Results, Inc., from offering or selling securities in Colorado.
“This is an important decision for the Division of Securities, as Mr. Roop and his company have consistently balked at and side-stepped the common sense regulations in place to protect consumers against unscrupulous securities professionals,” Rome said of the summary judgment order. “The court’s ruling prohibits Mr. Roop’s further participation in the securities industry in Colorado, and this is a good outcome for investors in our state.”
The permanent injunction resulting from the motion for partial summary judgment addresses multiple violations of the Colorado Securities Act by Roop and his company dating back to 2008. In 2012, both Roop and the company—in the business of selling third party investments for a real estate “private lending program”—were placed under a temporary restraining order, which barred them from engaging in securities-related business.
Despite being under the restraining order, in 2013 Roop acquired financing to purchase a property using three separate investments. Once the Division of Securities was made aware of these sales, Commissioner Rome pursued a motion for contempt. On Feb. 5, 2015, Denver District Court Judge Michael Martinez ordered the defendants to rescind the transactions and pay the Division’s attorney’s fees incurred in litigation of the contempt motion. Following the contempt order, the Court issued a subsequent order on March 5, 2015, granting the Division’s motion for partial summary judgment, imposing a permanent injunction, and concluding that the defendants offered and sold unregistered securities in Colorado and acted as an unlicensed broker-dealer and sales representative. Following entry of the permanent injunction, the parties reached a settlement in which the Commissioner agreed to dismiss a fraud claim against the defendants.
“Mr. Roop’s case is a great reminder that investors need to diligently research any security, as well as the company and its salespeople, before they put their money toward an investment,” Rome continued. “That’s what the Division of Securities is here for—call us and check things out before you turn over your hard earned money.”
The Division of Securities can be reached at (303) 894-2320 or by visiting www.dora.colorado.gov/dos.