Two Colorado men who defrauded investors in a scheme that included a housing project in Colorado Springs, have been sentenced by a judge, Colorado Attorney General John Suthers announced Monday.
A Douglas County District Court judge sentenced sentenced Adam Kelepolo ,38, to a 10-year community corrections term for his part in defrauding investors between September 2002 and March 2007 as part of a securities fraud scheme. Kelepolo also was ordered to pay $820,000 in restitution to his victims.
Derek Roy Kent, 65, in February 2009 was sentenced to five years in prison for his part in the scheme. The judge also ordered Kent to pay $765,477 in restitution to his victims.
AG makes fraud prosecution a priority
“The judge’s stiff sentences in these cases underline the toll investment scams can inflict on consumers,” Suthers said. “I have made the prosecution of securities fraud cases one of the focal points of my tenure in office. With so many people trying to recoup their losses during this economic recession, Coloradans have been accosted by investment schemes preying on their desire to recover their savings.”
According to the indictment, handed down in May 2009, Kelepolo and Kent raised more than $1 million for a variety of projects, including housing projects in an area known as the Broadmoor Bluffs in Colorado Springs and a business campus in Larkspur.
Kelepolo is suspected of using 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 money the duo raised actually were invested in the projects they pitched to investors.
Contact John Rebchook at JRCHOOK@gmail.com.