St. Charles County Man Sentenced in Investment Fraud Scheme
|U.S. Attorney’s Office April 07, 2014|
ST. LOUIS, MO—Michael Kitchen, St. Peters, Missouri, was sentenced to 24 months on federal fraud charges for conducting an investment fraud scheme during 2008 and 2009.
According to court documents, Kitchen marketed a “verification of funds” financial opportunity to a number of investors and took in approximately $500,000. Kitchen told investors’ their money was safe and, if placed in a verification of funds transaction, would earn more than 1,000 percent annualized return. However, Kitchen failed to protect or place investors’ funds. To the contrary, Kitchen simply spent investors’ money on business and personal expenses over several years.
Kitchen pled guilty in October to one felony count of wire fraud for devising this fraud scheme and two counts of money laundering for using its proceeds to purchase two automobiles. He appeared today for sentencing before United States District Judge Carol E. Jackson.
This case was investigated by the U.S. Postal Inspection Service and the FBI, in cooperation for the Office of Securities Enforcement-Missouri Secretary of State’s Office, which is currently prosecuting a civil enforcement action against Kitchen. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.