One of two men indicted for defrauding investors who believed their money was being used to finance home construction in Colorado Springs and a high-tech business campus near Larkspur has been sentenced to five years in prison.
Derek Roy Kent, 64, has also been ordered to pay restitution of $765,477 to his victims.
Indicted in September along with Kent was 36-year-old Adam Kelepolo, who will go on trial May 4.
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.
Kelepolo, described as president and chief executive of Lion Gate Homes, was also allegedly involved in a project known as Larkspur Railyard Land, a proposed high-tech business campus near Larkspur.
Kelepolo is alleged to have used the money for personal expenses, including restaurant bills and gambling at Cripple Creek casinos.
According to the indictment, Kent found several of the investors via SunAmerican Securities and AIG Financial Advisors Inc., where he worked as a licensed stockbroker and financial adviser.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
