Colorado man sentenced for role in fraud scheme

February 23rd, 2010 - 3:30 am ICT by BNO News  

DENVER, COLORADO (BNO NEWS) – A Colorado man was sentenced to five years in prison for his role in defrauding investors as part of a securities fraud scheme, prosecutors announced on Monday.

Derek Roy Kent, 64, and his partner Adam Kelepolo, 37, raised more than $1 million for a variety of projects in Colorado Springs, Co., and a business campus in Larkspur, California from 2002 to 2007.

Kent, a licensed stockbroker and financial advisor, was employed by SunAmerica Securities, Inc., later acquired by AIG Financial Advisors Inc. (AIG). He met Kelepolo in 2002 and after working together ended up with $270,000 in loans from Vectra Bank. The defendants used investor’s money to clear some of the debt with Vectra.

In 2004, Kelepolo founded Lions Gate Homes Inc. in order to develop homes in Colorado Springs. The duo started to look for investors. Through SunAmerica and later AIG, Kent found several of the victims. Kelepolo used the money for personal expenses; minimal amounts were invested in the projects they pitched to investors.

Kelepolo is currently awaiting trial, scheduled on May 4.

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