The Level Par Scam by Kelly G. Rogers

Yep, the scam that started the down hill spiral of Kelly G. Rogers, Lawyer of Frisco Texas. On the fast track to rebuild his home, Rogers set off on a Bernie Madoff pace that caused many of Kelly G Rogers friends, acquaintances and those in his Amway down-line to lose Millions of dollars.

After all, what are friends for? 

SEC v. Global Finance & Investments, Inc. et al. Case 4:07-cv-00346

18. "Kelly G. Rogers, age 47, is a resident of Frisco, Texas and was the managing member of Level Par until July 2006, when he was forced to resign after the other Level Par members discovered he had diverted Level Par’s funds to his personal bank account. Rogers was a member of the Texas Bar Association until April 2005, when his license was suspended for failure to pay Texas’ occupational tax". (Page 5 & 6)

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS
SHERMAN DIVISION, Case SECURITIES AND EXCHANGE COMMISSION vs. GLOBAL FINANCE & INVESTMENTS, INC.

Page 11:  Roger’s fraudulent offering:

43. In January 2006, Clark told Kelly G Rogers that Clark had invested with Global Finance and was receiving profits from Global Finance’s program. In fact, drawing from the representations in Davis’s December 20, 2005 joint venture amendment, Clark represented to Rogers that he had $100 million invested in the Global Finance investment program.

44. In February 2006, after Rogers expressed an interest in participating in Global Finance’s program, Clark introduced Kelly G Rogers to Davis. According to Rogers, Davis offered him a “totally secure” high-yield program involving the purchase and sale of bank debentures that paid monthly returns of up to 25 percent. Davis touted the fact that the funds would be safely deposited in an attorney’s trust account and would not be withdrawn until an actual transaction commenced or an instrument was purchased.

45. In February 2006, Kelly G Rogers was the managing member of Level Par and its sole contact with Global Finance. Kelly G Rogers, using Level Par as a pooling vehicle, conducted an offering, and invested the proceeds with Global Finance. Based on Davis’s representations, Rogers prepared Level Par’s offering documents, promising investors monthly returns ranging from three to 10 percent. Kelly G Rogers orally represented to Level Par investors that their principal was not at risk because it remained in an attorney’s trust account. Rogers also told investors that the funds would be used as collateral to trade in various bank debentures or mortgage backed securities. Kelly G Rogers told one investor that “the World Bank would have to collapse to lose his investment.” Rogers raised $4.7 million from approximately 35 investors and wire transferred all of it to Global Finance in February and March 2006.

46. Rogers knew that Davis’s claims were fraudulent. First, Rogers was an investor in Correll’s scheme, a similar high-yield investment program, which had ceased making promised payments. Also, Rogers was on notice that these investments were scams when he learned of the Commission’s allegations in the Correll civil action in which Robbie Gowdey, Rogers’s friend and neighbor, was charged with violations of the federal securities laws.

47. Nevertheless, on February 13, 2006, Rogers caused Level Par to enter into a joint venture agreement with Global Finance, and a trust account agreement with Dippolito, containing terms similar to Clark’s and Schliemann’s agreement with Davis.

In the end, many investors we talked with have never gotten ONE PENNY of money back from the Level Par investment. In the meantime, has Rogers curbed his fund raising activities? NO. But surely he's seen the light and now enables his investors to rake in huge profits to rebuild his reputation as a rain-maker, right?

What do you think? Maybe you should ask those who've invested with Rogers in the past years to get the answer?

In the meantime, let's all look ahead to the February trial for justice to be served.

Kelly & Carrie Rogers Lower Sale Price of Home

Kelly G Rogers and Carrie S Rogers have lowed the selling price of their home at 8 Riva Ridge in Frisco, Texas. The new selling price is now $2,999,000, reduced from $3,200,000. The listing agent is the "Jan Richey Team".

According to Zillo, this 10,675 square foot home at 8 Riva Ridge has a value range of between $534,750-$727,260, with a current value of $713,000...which seems very low. In comparison, the home at 7 Riva Ridge is a 12,081 square foot home that's been on Zillo for 340 days (which means it's been overpriced and everyone knows it) is valued between $1,168,805 to $1,509,090. It has a current Zillo value of $1,479,500 and is listed at $2,499,900. So it appears in the midst of this  economic downturn, the Rogers are in no hurry to sell this home at a listing price of $2,999,000.

Interestingly, this home has been at the epicenter of the problems created for Kelly and Carrie Rogers. You could call it the "Contributing Factor". For example, in the "Thompson " lawsuit, investors claim; ...although it is undisputed that the $180,000 received from the operator was the property of the company, Rogers testified that he "borrowed" the $180,000 for his personal use. According to Rogers, the $180,000 was used for home improvement. To date, Rogers has provided no promissory note or other evidence that he "borrowed" the money. Further, Rogers has so far repaid none of the money.

And in the State of Texas v Kelly Rogers’s indictment, the State identified transfers from the Lionheart Energy LLC checking account; specific monetary transactions described in the indictment for misapplication of fiduciary property as follows;

• Check #992 to Pool Environments on 3/11/2005 = $26,661.00

• Check #998 to Pool Environments on 3/29/2005 = $30,000.00

The Rogers' make the claim that the inability to refinance the $1,200,000 construction loan that matured in February of 2009 resulted in the bankruptcy filing of Kelly G Rogers on July 27th of 2009. However, apparently it didn't wipe out Carrie S Rogers because she was not included in the bankruptcy filing. Yet in the papers filed on 12/4/2009, it states; Unfortunately, the cost of the home exeeded $1,800,000, wiped out all the Rogers' available cash and life savings, caused even more indebtedness, and the home is still not finished. It did say Rogers', didn't it?

In the end, it boiled down to the "Big Dream" home that finally sunk the Amway Dream Machine.