DENVER — Colorado Attorney General John Suthers announced today that a Douglas County District Court judge has sentenced Derek Roy Kent (DOB: 10/30/1945) to five years in prison for his role in defrauding investors from September 2002 and March 2007 as part of a securities fraud scheme. The judge also ordered Kent to pay $765,477 in restitution to his victims.
According to the indictment, handed down in May 2009, Kent and his partner, Adam Kelepolo (DOB: 2/10/1973), 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.
According to the indictment, Kent found several of the duo’s victims via SunAmerican Securities and AIG Financial Advisors, Inc., where he worked as a licensed stockbroker and financial adviser.
Kelepolo’s case continues in Douglas County District Court. A trial for Kelepolo has been scheduled to start May 4.