Kenneth Powell and Kathryn Rose, former money matters radio show hosts who hosted weekly infomercial shows called “Academy of Real Estate,” “Money Intelligence” and “The Ken and Katie Show” on Ventura, California radio station KVTA have been arrested for real estate fraud. They, along with cohort Paul Lascola have been charged with “dozens of felonies” including fraudulent land deals and misappropriation of more than $3 million in investor funds.
The talk shows were designed to recruit listeners to investment seminars where investment properties and opportunities were presented. The shows targeted elderly listeners who “invested their life savings or all the equity in their homes” between 2005 and 2008, according to the Ventura County Sheriff’s department. Investors were asked to invest money in construction and repair of vacant lots in exchange for a share of future profits once the homes on the lots were sold. No construction took place on the lots, which had been sold before the investment monies were ever taken up by the three. Seminar participants were also asked to loan money to others, including individuals with undisclosed pending foreclosures or other bad debts.
All three were arrested last week and bail has been set at $1 million each.
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