SALT LAKE CITY – Kenneth Case Tebbs, a 42-year-old man from South Jordan, Utah, is staring down a 78-month federal prison sentence after pleading guilty to wire fraud in connection with a real estate investment scheme. U.S. District Judge David Sam handed down the sentence on Monday afternoon at the U.S. District Court in Salt Lake City.
Judge Sam has set an October 10th hearing to iron out restitution details in this grim case. Tebbs is expected to report to the U.S. Bureau of Prisons on October 28th to start his term, after which he’ll be under supervised release for another 36 months.
The U.S. Attorney’s Office revealed that Tebbs and his two companies, Twin Peaks Financial and MNK Investments, attempted to cash in on the real estate boom from 2004 to 2007 by promising investors sky-high returns of up to 18 percent plus origination points. But according to federal prosecutors, Tebbs’ business plan spiraled into a Ponzi scheme that required a constant stream of new investors to keep afloat.
In a plea deal with federal prosecutors, Tebbs confessed to expanding Twin Peaks’ operations in 2006 to focus on acquiring large subdivision projects. He admitted losing control and realizing the need for fresh investor cash to keep the business going. Tebbs also admitted forging trust deeds and lying to investors about their investments’ soundness, even as he knew they were worth little more than the paper they were printed on.
Assistant U.S. Attorney Mark Y. Hirata slammed Tebbs’ actions, arguing for a 78-month sentence to reflect the severity of his Ponzi scheme. The plea agreement revealed that Tebbs accepted nearly $49 million from investors and paid out approximately $37 million in Ponzi payments.
This case is being prosecuted by the U.S. Attorney’s Office in Utah and investigated by the FBI.
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Key Facts
- State: Utah
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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