The Statewide Grand Jury has indicted Derek Roy Kent and Adam Kelepolo on suspicion of committing 11 counts of securities fraud and theft against Colorado investors between September 2002 and March 2007.
“Securities fraud is a serious breach of the public trust,” Colorado Attorney General John Suthers said. “This case underlines that perpetrators of securities fraud will not go unnoticed in the state of Colorado. Hopefully other scam artists hoping to rip off Colorado investors will think twice before they follow in Kent and Kelepolo’s footsteps.”
According to the indictment, Kent and Kelepolo raised more than $458,000 for a variety of projects, including housing projects in an area known as Broadmoor Bluffs in Colorado Springs and a high-tech business campus in Larkspur. Kelepolo used the money for personal expenses, including restaurant bills and gambling expenses at Cripple Creek casinos. Kent and Kelepolo also allegedly used investors’ funds to make loan payments to Vectra Bank. Minimal amounts of the capital Kent and Kelepolo raised were actually invested in the projects they pitched to investors.
Kent found several of his and Kelepolo’s victims via AIG Financial Advisors, Inc., where he worked starting in October 2005.
Attorneys from the Office of the Attorney General will prosecute Kent and Kelepolo in Douglas County District Court.