The state grand jury has returned multiple counts of theft and securities fraud against two men who allegedly scammed investors out of money they thought was being used to finance construction of homes in Colorado Springs and a high-tech business campus in Larkspur.
Indicted were Derek Roy Kent, 63, and Adam Kelepolo, 36.
Kent is described by the Colorado attorney general’s office as a financial adviser who at one time worked for AIG Financial Advisors.
Kelepolo is described as a construction executive — president and chief executive of Lion Gate Homes.
According to the indictment, Kent and Kelepolo raised more than $458,000 from 32 investors for a variety of projects including a purported effort to develop homes in the Broadmoor Bluffs area of Colorado Springs.
In addition, Lion Gate became involved in a project known as the Larkspur Railyard Land, a proposed high-tech business campus.
According to the indictment, Kelepolo used much of the money for restaurant and gambling expenses at casinos in Cripple Creek.
The grand jury also accused Kent and Kelepolo also of using investors’ funds to make loan payments to Vectra Bank.
The indictment alleges that only minimal amounts of the capital the men raised were actually invested in the projects they pitched to investors.
Investigators allege that Kent found several of the alleged victims through AIG Financial Advisors, where he worked starting in October 2005.
The attorney general’s office will prosecute Kent and Kelepolo in Doug las County District Court.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
