Advisor conned hockey vets

Advisor conned hockey vets

Advisor conned hockey vets 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.
  • Peter 2015-07-17 10:09:03 AM
    Unfortunately, these are the people who give our industry a bad name and these are the types of cases that are sensationalized by the media.
    And no matter how much compliance the regulators place on the shoulders of honest advisors to protect the consumer (and the financial insitututions), the crooks will always be crooks and no volume compliance will deter them!
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  • Graham 2015-07-17 12:30:56 PM
    I agree Peter. All the bullshit paperwork I have to fill out and hoops to jump through, and in the end if a bad apple wants to rip people off, they will.
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  • Robert Roby 2015-07-17 11:26:45 PM
    Let's not forget the Wall Sreet Boys and might I add Country Wide mortgages , Lehman Brothers Nortel, bre-ax Worldcom and Enronetc who scammed billions from the backs of everyday citizens. Some of these perpertrators ended up in high level government positions. How many were convicted? These industry players makes Hannibal look like a saint. While I am at it how much money have investors lost due to puffery, posturing and the salacious headlines By many media outlets such as BNN or what I call the Bad News Network.

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