Former Jefferson County Deputy Sentenced to Six Years in Prison for Securities Fraud
Colorado Attorney General Cynthia H. Coffman, and the Colorado Division of Securities, part of the Department of Regulatory Agencies (DORA), today announced that former Jefferson County Sheriff’s deputy Daniel Sullivan, 47, has been sentenced to six years in the Department of Corrections followed by a mandatory five years of parole. The sentence came as a result of Sullivan’s plea of guilty to one count of securities fraud, a class three felony, in December.
“This defendant was responsible for protecting Coloradans as a law enforcement officer, and instead chose to defraud people of their hard earned money for his own personal gain,” said Attorney General Coffman. “I hope that this sentence will serve as a strong deterrent to anyone else who might be tempted to engage in such deception and fraud.”
According to an investigation conducted by the Colorado Division of Securities, Sullivan began in 2009 to give seminars to fellow coworkers at the Jefferson County Sheriff’s Office about how to build wealth through real estate and investing. Sullivan, who never held a license to advise on, solicit, or conduct investment transactions in the state of Colorado, then offered a number of coworkers, friends, and family members invest opportunities with many of the same companies he allegedly claimed were bound to be successful.
“While loss of savings to fraud is always difficult to see, a case like this where a position of trust and friendship was exploited is particularly difficult,” commented DORA Executive Director Joe Neguse. “That’s why we want to remind folks that no matter who the person recommending an investment opportunity is, still check with DORA to make sure that he or she is licensed and holds the proper credentials.”
A grand jury indictment initially handed down in June of 2015 and supplemented in November of 2016, accused Sullivan of collecting more than $1 million from investors over an approximately five year period from 2009 to 2014. While Sullivan did place a portion of the collected funds into investments, he co-mingled investor funds with his own personal funds in a number of bank accounts, reaching an alleged total of $671,000 of investor monies on personal expenses.
While Sullivan did warn his coworkers about the risks associated with any investment venture, the victims in the case maintain that he consistently represented to them that he was placing their assets in winning investments, and lied to them about the state of his own finances and qualifications.
Sullivan was immediately remanded into custody. Restitution is to be determined at a hearing on April 28, 2017.
DateMarch 8th, 2017