A Securities and Exchange Commission complaint filed Wednesday alleges two Orange County men operated a boiler room that used millions raised for green-energy investments to fuel their lavish lifestyles.
Larry R. Crowder, 53, of Newport Coast, and Joseph R. Porche, 51, of Aliso Viejo, ran the scam between early 2008 and February 2009 through their Costa Mesa company, Kensington Resources, the SEC alleges.
The Los Angeles Times has the scoop.
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Investors recruited through telemarketing and online solicitations were told their money would go to fund an environmentally friendly energy business, but out of $11 million collected, only about $315,000 went to American Environmental Energy Inc., also in Costa Mesa, according to the complaint.
The SEC claims Porche took more than $1.34 million of investor funds for himself and that Crowder took more than $644,000. The two men also misappropriated more than $3.48 million in investor money to pay for homes, furniture and other extravagances, including at least $46,000 for Crowder's wedding in Italy and more than $343,000 for luxury cars, according to the complaint.
The complaint also names these salesmen: Konrad C. Kafarski, 40, of Trabuco Canyon; Carlton L. Williams, 51, of Coto de Caza; Gary K. Juncker, 47, of Rancho Santa Margarita; and Dale J. Engelhardt, 46, of San Clemente.
The Times reports that Crowder and Engelhardt have had previous run-ins with the SEC, being charged in 1998 for being involved in another investment fraud scheme. Crowder was permanently barred from associating with any broker or dealer and Engelhardt was suspended for one year from associating with any broker or dealer, according to the daily.