It’s a story far too common.
Scottsdale financial advisor Phillip A. Kenner and his partner, race car driver Tommy C. Constantine, were recently convicted of a multi-million dollar fraud in a New York court. The victims included current and former hockey players such as Mike Peca, Bryan Berard, and Sergei Gonchar.
Kenner convinced his hockey-playing clients to open lines of credit that the advisor then tapped for more than $10 million. The two Scottsdale schemers took more than $20 million in total from their clients investing the money in real estate, a start-up credit card company and several other deals.
“Driven by personal greed, [Mr.] Kenner and [Mr.] Constantine spent years lying to investors and stealing their money, and then attempted to conceal their fraud by repeatedly and brazenly avoiding responsibility, shifting blame and scapegoating others,” Kelly T. Currie, acting U.S. Attorney for the Eastern District of New York, said in a statement. “Today, their scheme has been brought to an end.”
The fraud was carried out over an 11-year period with the good times coming to an end in October 2013 when the pair were indicted for wire fraud, wire fraud conspiracy and money laundering conspiracy.
Looking at spending up to 20 years in jail the duo also face the forfeiture of $30 million in ill-gotten gains from the scheme.
“Their success in defrauding so many individuals reinforces how important it is to use care when investing, no matter how much confidence you have in the individual or company you are investing with,” Shantelle Kitchen, Internal Revenue Service special agent in charge, said in a statement.