News


Danville man charged in $17 million fraud scheme

Defendant allegedly stole from beneficiary trust accounts

A Danville resident has been charged with bilking $17 million from at least 10 people by transferring money from their trust accounts for his personal use.

On Wednesday, a federal grand jury in San Jose indicted Leo Joshua Kennedy, 60, on 10 counts of wire fraud, according to a release from United States Attorney Melinda Haag.

According to the indictment, Kennedy stole the $17 million from beneficiary trust accounts while working as an accountant at Backhouse Fiduciary Services in San Jose. The indictment said Kennedy used the funds to make his own personal investments and for living expenses.

Kennedy is scheduled to make his initial appearance in federal court in San Jose on Nov. 20 before Magistrate Judge Grewal.

If convicted on all counts, Kennedy could face up to 20 years in prison on each count of wire fraud and be fined $250,000 -- or twice his profit or loss -- plus restitution.

The indictment is part of efforts by President Obama's Financial Fraud Enforcement Task Force, which was created in November 2009 to investigate and prosecute financial crimes.

More than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners are part of the task force; Haag's office said it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.

Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.

Comments

Posted by Bill, a resident of Danville
on Nov 2, 2012 at 6:22 am

What kind of delusional thinking do these people have? Audits will happen and they will get caught. I guess greed trumps insight and denial rules!


Posted by buszmom, a resident of Danville
on Nov 3, 2012 at 10:28 pm

at Bill -- sadly this town is full of arrogance....


If you were a member and logged in you could track comments from this story.

Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: *

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields

Moneyball, the Sequel: Billy Beane for President!
By Tom Cushing | 6 comments | 1,052 views

Planning the "Pleasanton way"
By Tim Hunt | 13 comments | 934 views

Getting rid of an old toilet
By Roz Rogoff | 8 comments | 506 views

Take Full Advantage of Free Standardized Testing Opportunities
By Elizabeth LaScala | 0 comments | 469 views