A Lakewood, Colo., man was sentenced this week to three years in federal prison for defrauding more than 23,000 investors through an “offshore rent/mortgage free program,” federal officials said Wednesday.

Kenneth Roy Weare, 58, pled guilty on April 1, 2004, to wire fraud, mail fraud and other charges named in a March 25, 2003, indictment. He was ordered to pay $1.2 million in restitution to the victims who responded to an FBI victim survey.

According to the indictment, Weare devised a scheme to defraud investors by offering them membership to an “offshore rent/mortgage free program” for a yearly membership fee of $375. He promised investors that they would receive payments of $375 a month after an initial six-month waiting period.

Weare established a company called J&K Global Marketing Corp. to implement the scheme, the indictment states.

Weare promised investors they could become a “qualified member” by referring three other investors to become members of the program. Qualified members would receive a $50 payment for each referral, and, after six months, would receive $1,500 per month, the indictment states. Weare also told investors he was investing in “high yield programs,” which would return between 200 percent and 1,200 percent per month.

From Nov. 19, 1999, to Dec. 31, 2000, Weare collected more than $9 million in membership fees by means of wire transfers, checks and money orders to bank accounts in the United States, Canada, Luxembourg, and the West Indies. He then used a portion of the funds to make payments back to investors, and allegedly converted the remainder of the funds for his own use and benefit and the use and benefit of others.

Prior to the indictment, Weare was in the custody of the U.S. Marshals Service on contempt of court charges for failing to pay disgorgement of investors funds, repatriate moneys held offshore, and provide an accounting of money raised from investors, from a civil Securities and Exchange Commission case. 

The case was investigated by the U.S. Postal Inspection Service and the FBI, with the assistance of the Securities and Exchange Commission.

***

Send tips or a Letter to the Editor to jessica@inman.com or call (510) 658-9252, ext. 133.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Prepare for this fall with top agents & brokers at Connect Now this Tuesday.GET YOUR TICKET×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription