CHARLESTON, WV (WOWK)—A Texas man was sentenced on Friday for his involvement in an investment scheme.
The Department of Justice says that 68-year-old Leonard Kern, of Plano, Texas, was sentenced to 10 months in prison and three years of supervised release for obstruction of justice. They say Kern was involved in a scheme that cost a West Virginia woman $375,000.
Court records say that in May of 2012, Kern convinced the woman to invest in a “Private Placement Platform” with two other people, and he promised her a low-risk financial transaction for an exclusive group of investors with an abnormally high rate of return over a short amount of time.
Kern spent the money on a personal vehicle, personal debit transactions and home mortgage payments, according to court records.
The woman received no return on her investment, and Kern admitted that he knew her funds were depleted by mid-2013. Kern also admitted to intentionally obstructing a grand jury investigation by concealing hundreds of documents.
Kern will also pay $130,000 in restitution.