Logan County Man Receives 48 Year Prison Sentence for Securities Fraud
released on March 27, 2017
found in newsletter: March 2017
Eddie Wayne Johnson of Sterling, Colorado was sentenced to a total of 48 years in the Department of Corrections with five years of mandatory parole following a jury conviction of seven counts of securities fraud and four counts of theft over $20,000. The case was prosecuted by the Colorado Attorney General’s Office following an investigation by the Colorado Division of Securities, part of the Department of Regulatory Agencies.
“The defendant has a lengthy criminal career that has resulted in a deservedly long prison sentence,” said Attorney General Cynthia H. Coffman. “This case serves as an important reminder to Colorado consumers that they need to thoroughly research a party or business when investing their hard-earned money.”
The prison sentence resulted from Johnson’s actions starting in August of 2013 when he solicited funds from at least five people for the purchase of stock in Overland Trailer Mfg., LLC and Overland Corporation, LLC. Investors were told that the companies, both owned by Johnson, were under contract from large outdoor sporting goods retailers for the production, marketing, and distribution of trailers. In exchange for their investment, Johnson promised high returns with little or no risk.
Once investors had turned over a total of around $171,000, plus a car valued at $30,000, Johnson, who did not have contracts with the afore-stated businesses, devoted some of the funds to personal expenses and business expenses that were unrelated to the contracted orders. These expenses had not been laid out in disclosure documents for the investors.
Johnson also failed to disclose his past criminal history to investors including multiple previous felony convictions and an unsatisfied civil restitution judgement from a previous case.
“This case represents the excellent collaboration between our office and the Colorado Attorney General’s Office to permanently remove a career criminal from society,” stated Securities Commissioner Gerald Rome. “Through the efforts of both agencies, recidivist financial offenders who can be so damaging to communities are brought to justice.”
“I applaud the work of DORA’s Division of Securities and the Attorney General’s Office on their continual work to seek justice for consumers who fell victim to such destructive predatory financial practices,” said DORA Executive Director Joe Neguse. “We encourage all consumers to immediately file a complaint with us if they believe they have been victims of financial fraud.”
Johnson was granted 102 days of credit for time served.
A previous press release was sent out regarding his conviction which can be found at: https://coag.gov/press-room/press-releases/01-19-17
Original Press Release