Leonard Theodore Kern, Investment Scheme, West Virginia 2022

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Table of Contents

West Virginia Man Loses $375,000 in Dubious Investment Scheme

A scheme that defrauded a West Virginia woman of her life savings has landed the scam artist behind bars. Leonard Theodore Kern, 68, of Plano, Texas, was sentenced to 10 months in prison for obstructing justice in a $375,000 investment scheme.

Kern convinced the victim to invest a total of $375,000 in a ‘Private Placement Platform’ with two other individuals in May 2012. He promised a low-risk financial transaction for an exclusive group of investors and an abnormally high rate of return over a period of just two months.

However, Kern admitted that he knew the victim’s funds were depleted by the middle of 2013, and she would receive no return on her investment. A federal investigation resulted, and grand jury subpoenas were served upon a company owned and controlled by Kern seeking documentation and records related to the investment transactions.

Kern intentionally obstructed the grand jury investigation by concealing hundreds of documents responsive to the grand jury subpoenas. He further admitted that he personally benefited in the amount of approximately $130,000 from the unauthorized depletion of the victim’s money.

Kern used the victim’s funds to buy an expensive personal vehicle, make routine personal debit transactions, and pay home mortgage payments. He must now pay $130,000 in restitution.

The case was prosecuted by Assistant United States Attorney Andrew J. Tessman. United States District Judge Frank W. Volk imposed the sentence.

Kern’s sentence was announced by United States Attorney Will Thompson, who commended the investigative work of the Federal Bureau of Investigation (FBI).

The case is identified as 5:20-cr-183 in the United States District Court for the Southern District of West Virginia.