Lakewood Man Indicted for Securities Fraud
A Lakewood man has been indicted for his alleged involvement in an
investment scam. Kenneth Dewey Wyatt, 51, of Lakewood, has been indicted on 51 counts
of securities fraud and four counts of theft by a Jefferson County grand
jury on February 18, 2011.
The investment scam allegedly began in 2007 when Mr. Wyatt, who began doing business as Wyatt Group Realty LLC, solicited more than $1.7 million from his friends, acquaintances and co-workers. The scam heightened in October 2008 when his company began to falter.
Mr. Wyatt supposedly approached potential investors by asking for money to expand his business. According to the indictment, he offered up to a 40 percent rate of return for short-term investments. However, the indictment states that Mr. Wyatt repaid less than 5 percent of the total money raised.
The indictment also indicates that Mr. Wyatt made nominal repayments to some investors. Other investors received nothing. The indictment names 12 victims.
Mr. Wyatt created Vast Property Management, which failed to produce any income, when Wyatt Group Realty LLC began to falter. He has been accused of moving money between his personal accounts and the two companies, as well as using funds from one investor to pay another.
Mr. Wyatt was arrested on February 25, 2011, and posted bail. He is expected to appear in court again on Monday, March 14.