2012-08-16 / Community
Pair charged in real estate fraud case ordered to pay $8 million in restitution
Two former radio talk show hosts sentenced to prison last month for their roles in a real estate investment fraud case have been ordered to pay nearly $8 million to their victims.
Kathryn “Katie” Bess Rose, 63, of Woodland Hills and Kenneth Alan Powell, 59, of Bakersfi eld were sentenced July 31 at Ventura County Superior Court after they pleaded guilty to 28 felonies related to real estate fraud that targeted mostly retired and elderly investors from Ventura, Los Angeles and Santa Barbara counties.
Many of the victims gave their life savings or the equity in their homes.
Rose, who pleaded guilty to 13 felonies, was sentenced to 12 years and eight months in state prison and ordered to pay $3.4 million in restitution.
Powell, a former Thousand Oaks resident, pleaded guilty to 15 felonies before he was sentenced to 18 years in state prison and ordered to return $4.3 million to victims.
Deputy District Attorney Dominic Kardum said he does not expect Rose and Powell to pay the full amount.
“According to their attorneys, they’re destitute,” said Kardum, who noted that the debts cannot be discharged if the two declare bankruptcy.
Conducting business under Captech Advisors LLC, Rose and Powell had been charged with 29 and 42 felonies, respectively, including counts of grand theft, theft from an elder and special enhancements for taking money or property worth more than $500,000, according to the Ventura County D.A.’s office.
“This case is the largest and most complex real estate fraud case prosecuted to date,” Kardum said.
The prosecutor said that more than 15 people were victimized by the pair, who paid News Talk KVTA 1520 AM to host weekly radio shows “Money Intelligence,” “Academy of Real Estate” and “The Ken and Katie Show” between 2006 and 2008. Listeners were invited to attend the pair’s seminars, where they were encouraged to invest in properties in Ventura, Los Angeles and Kern counties, police said.
Also linked to the scams is Paul Charles Lascola of Thousand Oaks.
Charged with 24 felonies, he remains in jail and is scheduled for a preliminary hearing on Oct. 10.
The trio were arrested in August last year after complaints from victims led to a long-term investigation by the Ventura County Sheriff’s Department’s Major Crimes Bureau, the D.A.’s office and the Ventura Police Department.
The probe uncovered evidence of fraudulent land deals, equitybased real estate loans made by private lenders and misappropriation of funds, according to the sheriff’s department.