The U.S. Department of Justice has indicted Kenneth Kennedy on seven counts of wire fraud and five counts of mail fraud in the Middle Tennessee District. His wife, 58-year-old Sheila Kennedy, pled guilty two weeks ago for her role in the investment fraud case, which has been reported as defrauding victims of as much as $7.5 million.
Sheila Kennedy pled guilty to wire fraud, mail fraud and money laundering for a scheme that dated back to 2005, according to a spokesperson for the Justice Department. She, her husband and two other co-defendants, Philip Russel and Ann Scarborough, reportedly looked for investors for fake real estate deals in Las Vegas, Nev., Paducah and Indiana.
Kennedy admitted, as per her guilty plea arrangement, that she and her husband never invested any of the money, the amount of which was between $2.5 million and $7.5 million, mainly for hotel rooms, gambling, spa visits and new clothes, the spokesman said.
(For the rest of the story, check out the Wednesday, April 8, edition of the Cadiz Record.)