Conviction Sticks for Advisor in $30 Million Fraud Scheme
According to Investment News this week, a judge ruled against former financial advisor Phillip Kenner’s appeal of a 2015 conviction for charges including wire fraud and money laundering conspiracy. Kenner and his sidekick, retired race car driver, Tommy Constantine, were reportedly sentenced to 17 and 10 years in prison respectively for defrauding several National Hockey League (NHL) players, among other victims, out of millions of dollars through a real estate and business ventures fraud scheme.
Constantine, the founder of the Playboy Racing Team, and Kenner were reportedly convicted of wire fraud and money laundering charges by a federal jury in Central Islip, New York. The pair’s alleged scheme defrauded victims of $30 million.
Among Kenner’s clients were reportedly NHL Canadian players including former New York Islander Michael Peca, two-time Stanley Cup champions Darryl Sydor and Bill Ranford, and former New York Islander and New York Ranger Bryan Berard, according to Investment News.
The US Court of Appeals for the Second Circuit this week has reportedly ruled that the financial advisor isn’t entitled to a new trial. The court ruled “that erroneous jury instructions didn’t affect the outcome of the trial, as the case didn’t rise or fall on Kenner’s credibility,”‘ according to the article.
Investment Fraud Schemes
Kenner gained access to NHL players through a friend in college who had been drafted into the league. In one scheme, he reportedly convinced at least 13 players to invest $100,000 each in a Hawaiian real estate venture. Instead of investing the money, Kenner and Constantine kept the money for their own personal use. The losses were close to $13 million.
The two allegedly convinced many of the same NHL clients into investing $1.4 million into a prepaid debit card venture, Eufora. Instead of investing these funds, they were deposited into accounts controlled by Kenner and Constantine.
Luxurious Lifestyle
Kenner was reportedly living a luxurious lifestyle, thanks to the stolen funds, including his mortgage on a multi-million dollar home in Arizona, a beachfront property in California, and a Mexican tequila company. Constantine reportedly used his share to maintain his image as a race car driver, buying and upgrading cars, attending races, and hiring models to accompany him.
When the victims started to catch on to the schemes, the pair allegedly blamed the players’ losses on a Mexican real estate developer defaulting on an undisclosed loan. They convinced the NHL players to give them $4.1 million to litigate over the investment losses, but only used some of the money for the litigation.
Both Kenner and Constantine were ordered to forfeit property and assets by the court. The court reportedly ordered Kenner to forfeit his right, title, and interest in an oceanfront resort in Mexico, real property in Hawaii, and a Falcon 10 jet airplane, along with other assets, and to pay restitution. The court ordered Constantine to forfeit $8.5 million, as well as his rights to the Mexican resort, the Hawaii property, and the jet, and to pay $5.2 million in restitution.
Hiring a FINRA Attorney
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Last modified: July 27, 2023
