Related Federal Cases
Defendant Used Position as Pastor to Solicit Funds from Investors
DENVER – In a shocking turn of events, Pastor Charles Lawrence Kennedy Jr., 71, of Tampa, Florida, pleaded guilty to one count of wire fraud before U.S. District Court Judge Christine M. Arguello yesterday. Kennedy, who is free on a bond, is scheduled to be sentenced by Judge Arguello on January 22, 2014.
Kennedy was indicted by a federal grand jury in Denver on March 22, 2012, along with co-defendants Stanley Wayne Anderson of Arvada, Colorado and Edwin Alexander Smith of Denver, Colorado. Smith pled guilty to one count of wire fraud on August 27, 2013. Anderson’s trial is scheduled for January 13, 2014.
According to the facts contained in the indictment as well as the stipulated facts contained in the plea agreement, beginning in October of 2005 and continuing through December 2008, Anderson, Smith and Kennedy together with each other, and aiding and abetting other persons known and unknown to the Grand Jury, devised a scheme to defraud investors.
Kennedy, who worked as a pastor and conducted business through Keys to Life Corporation, a company he controlled, solicited investment funds from fellow pastors and members of their congregations. He promised that for every $1,000 invested, the minimum return would be $1,000,000, which would be paid within 90 days.
Kennedy collected $460,000 from nine investors and forwarded only $145,000 to Trinity for use in the investment pool, and as a result has agreed to pay $315,000 in restitution. The investors’ funds were not used to trade in financial instruments, but were instead misappropriated by Anderson, Smith and Kennedy for unauthorized uses.
“The defendant used his position as a Pastor to solicit funds from investors with promises of substantial returns,” said U.S. Attorney John Walsh. “Instead of investing the funds, he and others used the money for unauthorized purposes. The defendant’s abuse of his position of trust led to 100 people losing their hard earned money, for which the defendant will now face the consequences.”
Kennedy faces the consequences of his actions and will be sentenced on January 22, 2014. The case serves as a reminder to investors to be wary of investment proposals that promise high returns, and to always do their due diligence before investing.
Key Facts
- State: Colorado
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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