Suspect to admit role in Calif. investment scam
Federal prosecutors say a former executive of a Northern California investment firm has agreed to plead guilty to defrauding about 150 investors.
The U.S. attorney's office in Sacramento charged 66-year-old Kenneth Kenitzer of Pleasanton with mail fraud and money laundering in the $40 million scam. Spokeswoman Mary Wenger said Wednesday that Kenitzer will plead guilty under a plea agreement that could bring him a lighter sentence in return for his cooperation.
Kenitzer was vice president of Equity Investment Management and Trading Inc., which promised investors risk-free, 36 percent annual returns. Prosecutors say he and others withdrew the money and hid the loss.
His attorney, Laurel Ligi Headley, declined comment.
The firm's president, Anthony Vassallo of Folsom, faces similar charges plus violations of securities law.
