Colorado’s Kenneth Germain Accused of Multi-Million Dollar Mortgage Fraud
It is amazing the hubris that some of the scamsters have engaged in. A Kenneth Germain, 64, of Colorado is facing 62 counts of security fraud and theft in a wide ranging mortgage fraud case. Germain is accused of stealing millions of dollars by selling homes that were already foreclosed upon and then setting himself up as the property manager.
What caught my eye is what Germain reportedly did with the money. According to the Denver Post he “pocketed the money to pay for taxes and his personal mortgage payments and to spend at liquor stores.”
So we have a drunk who scammed millions of dollars to pay his bills and liquor costs yet was seen as a reliable agent for people to invest their life savings with? The audacity of the crime is only second to the gullibility of the victims in my eyes.
Prosecutors say Germain scammed dozens of people into buying foreclosed properties from the U.S. Department of Housing and Urban Development and then kept the money. An arrest warrant has been issued for Germain, and the Denver district attorney’s office says he has made arrangements to turn himself in to authorities in the next few days.
The indictment lists 60 victims with 167 properties involved in the alleged scam. Among the victims is Lisa Downing, owner of Vision Quest Entertainment, a local talent agency. Downing says her life savings and her son’s college savings are now gone, while her credit is ruined. via The Denver Post
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Comment by Kenneth Germain on 3 June 2009:
62 counts of Securites Fraud, and theft charges have been dismissed against Kenneth Germain by the Chief District Attorney heading up Colorado’s Economic Crime Unit. As you reported in the above article he alledged “pocketed the money to pay for taxes
and his personal mortgage payments and to spend at liquor stores. Additional you wrote ”So we have a drunk who scammed millions of dollars to pay his bills and liquor costs yet was seen as a reliable agent for people to invest their life savings with? The audacity of the crime is only second to the gullibility of the victims in my eyes. Do you now have the hubris to retract your comments which were obviously reported incorrectly by the Denver Post and then mindlessly with incredible gullibility reported to your readers in the above artical. Let your conscience be your guide.
Ken Germain
Comment by Glenn Edwards on 15 September 2009:
Good work Ken!
Comment by robert shapiro on 17 September 2009:
the Ken Germain I knew would never do such a thing
Comment by Ken Germain on 18 September 2009:
ALL CHARGES DROPPED
DENVER – The Denver District Attorney’s Office has dismissed charges against a man who was accused of scamming scores of investors.
On Jan. 2, 2008, a grand jury indicted 65-year-old Kenneth Germain on 62 counts of allegedly “soliciting numerous investors over the last few years to buy distressed properties for eventual resale.”
A spokesperson for the DA’s office said that after debating new information in the case, dropping the charges was the ethical decision.
It was a 15-month investigation from the Denver District Attorney’s Office Economic Crime Unit and the Office of Inspector General for the U.S. Department of Housing and Urban Development.