Securities fraud charges filed
Special to The Hays Daily News
LAWRENCE -- Kansas Securities Commissioner Josh Ney announced criminal charges were being filed against Family Homes Inc. and Roderic "Rod" E. Deines, Lawrence.
Deines was charged with 11 felony counts for violating the Kansas Uniform Securities Act, including allegations of securities fraud and the selling of unregistered securities. The criminal complaint alleges Deines committed securities fraud by unlawfully employing a scheme to defraud at least three Kansas residents by offering and selling unregistered securities in his business, Family Homes Inc., which he claimed was a house-flipping business that could produce extraordinary investment returns.
All three investors are from Russell, where Deines has had previous residence. The complaint alleges the funds given to Deines by investors primarily were used for his personal expenses and to pay other investors. Victim losses total more than $170,000.
Chris Mann, senior staff attorney for the Kansas securities commissioner, urges anyone with information to contact the agency.
"If you have been approached by this individual regarding investing in Family Homes, please contact the Office of the Kansas Securities Commissioner at (785) 296-3307," Mann said.
The violations listed in the complaint are allegations. Deines should be presumed innocent until proven guilty.