This week, it was announced that a federal jury in Denver, Colorado had convicted a California man of multiple charges for his involvement in an investment scheme in which he falsely told investors he was a billionaire and could access certain financing. 55-year-old Kenneth Brewington of Corona, California was convicted of one count of conspiracy to commit mail and wire fraud, one count of mail fraud, five counts of wire fraud, one count of conspiracy to commit money laundering, two counts of engaging in monetary transactions in property derived from specified unlawful activity and one count of laundering monetary instruments.
Evidence presented by the government at trial showed that beginning in roughly 2009, Brewington told victims he needed millions of dollars in supposed fees in order to access his extraordinary wealth abroad and that he would in return use that money for financing. During the course of the scheme, the defendant and co-conspirators sold promissory notes to victims. Some were sold through a financial-services marketing company called Compass Financial Solutions, which is based out of Denver.
It was falsely represented that the money would be used to pay for bank transaction fees, tax penalties to the IRS and other things. To hide the nature of the scheme, the defendant and his co-conspirators told victims to wire their funds directly into an attorney-trust account. The funds from that account were ultimately sent to the defendant and his co-conspirators. Some of the money was used to make repayments to other investors and some was used for personal expenses. The fraud scheme caused the victims to lose more than $3 million.
Brewington is scheduled to be sentenced on August 17, 2018. Further details have been made available here.