Two men who raised more than $1 million for housing projects – including the Broadmoor Bluffs in Colorado Springs – have been sentenced and fined for defrauding investors.
A Douglas County District Court judge sentenced Adam Kelepolo to a 10-year community corrections sentence and ordered him to pay $820,000 in restitution to his victims. The judge also sentenced Kelepolo’s co-defendant, Derek Roy Kent, to five years in prison for his part in the scheme. Kent was ordered to pay $765,477 in restitution to his victims.
As part of a securities fraud scheme, Kelepolo and Kent defrauded investors between September 2002 and March 2007.
The indictment stated that Kelepolo and Kent raised money for housing projects in the Springs and a business campus in Larkspur, Colo.
Kelepolo used the money for personal expenses, including restaurant bills and gambling expenses at Cripple Creek casinos. Very little of the money the men raised was actually invested in the projects they pitched to investors, said Attorney General John Suthers.