Loveland man sentenced to 6 years in prison for securities, check fraud

LOVELAND — John Walshe of Loveland, owner of American Imaging Co., has been sentenced to six years in prison for securities and check fraud in a scheme in which he took more than $200,000 from a Silverthorne man.

Walshe, 69, was convicted in February. He also will be on parole for five years after his release from prison. Walshe will begin serving his sentence for the Colorado case following his release from a Texas prison stemming from a 2010 federal sentence for tax evasion.

In 2009, the Colorado Securities Division issued a cease-and-desist order following an investigation into a newspaper advertisement for what turned out to be unregistered investments. Walshe also failed to become properly licensed with the state.

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In 2010, Walshe continued luring investors through newspaper advertisements for promissory notes for which he promised 15 percent to 18 percent interest rates, according to a statement released Friday by the securities division. He later bilked $205,000 from the Silverthorne man who responded to the ad, spending most of the money on personal expenses, the court said.

Adams County District Attorney Dave Young said these kinds of crimes are all too common. He urged people to check out anyone soliciting investment monies by checking public records for criminal histories, civil judgments, bankruptcies and actions taken by the Division of Securities. He said newspaper or Internet ads soliciting funds for an investment or business venture should raise red flags for anyone considering such an investment.

According to Friday’s statement, Walshe failed to disclose several facts to his investors that are required by the Colorado Securities Act. He hid the fact that he or companies he controlled had previously filed for bankruptcy three times, that many civil actions were filed against him involving unpaid notes and debts, and that he was prosecuted and convicted of federal criminal acts involving theft and tax evasion.