An 86-year-old Lawrence man pleaded no contest to three charges of fraud Friday and is expected to pay back more than $170,000 to investors he defrauded.
Roderic Deines was charged with 11 felony counts of violating the Kansas Uniform Securities Act in February. In a plea deal, the prosecution agreed to drop the other eight charges, but Deines is still expected to pay restitution to all victims of his investment schemes, securities fraud and selling of unregistered securities.
Deines told potential investors that his business, Family Homes Inc., could produce extraordinary investment returns. The business portrayed itself as one that bought homes and flipped them for large profits.
However, J.P. Rankin, staff attorney for the Kansas Office of the Securities Commissioner, said Deines admitted he never used any of the money several investors gave him to purchase any houses, but instead used the money for living expenses and to pay off previous investors.
A sentencing date is set for July 25.