Tuesday, April 23, 2024

Advisor who defrauded Canadian NHL stars again in court docket

When retired race automotive driver, Tommy Constantine, and monetary advisor, Phillip Kenner, have been convicted in a high-profile fraud case, they have been sentenced to 10 and 17 years in jail respectively. The 2 have been discovered responsible of scamming a number of Nationwide Hockey League (NHL) gamers, amongst different victims, out of hundreds of thousands of {dollars} by means of a collection of misleading actual property and enterprise ventures.

Kenner, initially from Arizona, and Constantine, the founding father of the Playboy Racing Workforce, have been convicted of expenses together with wire fraud and cash laundering conspiracy by a federal jury in Central Islip, New York, after a 10-week trial. The duo’s scheme, which spanned from 2002 to 2013, managed to internet them $30 million. Kenner’s shoppers included three high-profile Canadian gamers – former New York Islander Michael Peca, and two-time Stanley Cup champions Darryl Sydor and Invoice Ranford. Former New York Islander and New York Ranger Bryan Berard was additionally a consumer.

Kenner appealed the 2015 conviction, and initially of this week the US Courtroom of Appeals for the Second Circuit has dominated that the monetary advisor isn’t entitled to a brand new trial. The court docket dominated that inaccurate jury directions didn’t have an effect on the result of the trial, because the case didn’t rise or fall on Kenner’s credibility.

Kenner gained entry to NHL gamers by way of a university good friend who had been drafted into the league. He satisfied at the least 13 gamers to take a position $100,000 every in a Hawaiian actual property enterprise. Nevertheless, as an alternative of investing the funds as promised, Kenner and his clandestine accomplice Constantine siphoned off the cash, inflicting losses amounting to $13 million.

In one other ruse, the pair tricked most of the identical NHL shoppers into investing $1.4 million in Constantine’s pay as you go debit card enterprise, Eufora, in 2008 and 2009. As an alternative of investing these funds, they have been diverted into accounts managed by Kenner and Constantine.

When their earlier schemes began unraveling, the misleading pair conceived a brand new fraud, blaming the gamers’ losses on a Mexican actual property developer defaulting on an undisclosed mortgage. They coaxed the gamers into offering them with $4.1 million to litigate over the losses, solely to make use of a small portion of the cash for the litigation.

The stolen cash funded Kenner’s luxurious way of life, together with his mortgage on a multi-million greenback house in Arizona, a beachfront property in California, and a Mexican tequila firm. Constantine used his share to take care of his picture as a race automotive driver, shopping for and upgrading automobiles, attending races, and hiring fashions to accompany him.

The court docket ordered Kenner to forfeit his proper, title, and curiosity in an oceanfront resort in Mexico, actual property in Hawaii, and a Falcon 10 jet airplane, together with different property, and to pay restitution. Equally, Constantine was ordered to forfeit $8.5 million, in addition to his rights to the Mexican resort, the Hawaii property, and the jet, and to pay $5.2 million in restitution.

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