Defendants Targeted Aspiring Artists and Musicians, Stealing Millions of Dollars and Causing Victims to Declare Bankruptcy
In federal court in Brooklyn, an indictment was unsealed charging John Christian Gelin, Heather Marquez, and Kaolee Vang-Thao with conspiracy to commit wire fraud and conspiracy to commit bank fraud. The charges arise from a multi-year and multi-million-dollar scheme to defraud financial institutions, investors, and prospective investors in connection with potential real estate transactions.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and James C. Barnacle, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“As alleged, the defendants defrauded investors and lenders out of millions of dollars,” stated United States Attorney Nocella. “Because of their lies and greed, the defendants ruined the financial security of dozens of victims, leaving them on the hook for repaying loans they could not afford and causing some to declare bankruptcy. Our Office will vigorously prosecute those who abuse the trust of others and profit through fraud.”
“Through repeated lies, these defendants allegedly forced trusting investors into financial stress – and for some, ruin – to illegally route more than four million dollars to their personal accounts. The FBI’s Financial Crimes Task Force remains committed to apprehending fraudsters that steal from others to line their own pockets,” stated FBI Assistant Director in Charge Barnacle.
As alleged in the indictment, Gelin operated Kensington International, Inc. (Kensington), a purported real estate development company, and oversaw the Artist Financial Program (AFP), an affiliated entity that specifically targeted aspiring artists and musicians. Gelin marketed the companies as real estate investment firms focused on purchasing distressed real estate that would be rehabilitated and resold for profit.
The defendants raised investment capital by soliciting investors who generally had limited assets but high credit scores, and obtained loans and credit cards on behalf of the investors that they promised to repay. Marquez and Vang-Thao, through their firms the Funding Club Consulting and the Financial Saver Network, respectively, submitted loan and credit card applications on behalf of the investors. Unbeknownst to the investors, Marquez and Vang-Thao filed fraudulent applications with the lenders that often inflated the investors’ income to obtain higher loans. Investors were not shown the applications before Marquez and Vang-Thao submitted them, and Marquez and Vang-Thao advised investors to lie to the lenders. Additionally, Gelin used the alias “Christian” to conceal from investors and potential investors his criminal history, which included serving three years in prison for committing a similar fraud scheme.
Once the credit card and lending applications were approved, investors were instructed to wire 15% of the credit limit of the credit cards and loan proceeds to Marquez and Vang-Thao. The remaining 85% was transferred to bank accounts controlled by Gelin. Rather than using the loan proceeds entirely to invest in real estate as promised to investors, the defendants diverted investor funds to pay for their personal expenses and spent only a nominal amount of investor funds on buying and renovating homes.
Also contrary to their promises to the investors, the defendants did not pay the lenders back in full. As a result, the investors were unable to repay the full amount of the loans and credit cards taken out in their names. Some investors declared bankruptcy. In total, investors lost at least $4.2 million from the fraudulent scheme.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, they each face up to 30 years in prison.
If you believe that you or someone you know was victimized by the defendants, please contact the FBI by email at: KensingtonCase@fbi.gov or by calling 1-800-CALL-FBI.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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