During the conspiracy, Constantine operated Eufora LLC, a prepaid debit card business that he founded in 2002. Between February 2008 and May 2009, even as Eufora’s operating balances were in the red and Constantine testified in civil depositions that the company was nearly worthless, Kenner urged his clients to invest in Eufora.
Kenner concealed that he had wiped out most of his clients’ savings by borrowing against one line of credit to pay monthly interest charges for another, Currie said.
Money was also used to buy Constantine’s home out of foreclosure, to pay legal bills related to Kenner’s personal investment in a tequila company in Mexico, to defend Constantine in Florida litigation over his race car sponsorship activities and for an aborted effort by Constantine to buy Playboy Enterprises.
The defendants face a maximum of 20 years in prison on each count as well as forfeiture of up to $30 million iderived from the frauds. Sentencing is scheduled for November 20.