Industry News

Investment scheme lands Colorado man in prison

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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. Qual...