Financial interest turns to misdirected funds

A criminal action was filed on October 31, 2012 against Leo Joshua Kennedy for wire fraud under 18 U.S.C. § 1343. The U.S. Attorney’s Office has filed charges with the United States District Court Northern San Jose Division.

Heritage Bank

A grand jury has charged Leo Joshua Kennedy with wire-fraud. It is believed he had stolen money from customer accounts he was assigned to during his service at Backhouse Fiduciary Services as a beneficiary trust accountant.

Public Affairs Officer Jack Gillund with the Northern District of California U.S. Attorney’s Office said, “Mr. Kennedy made his initial appearance in federal court on November 20, 2012 and was arraigned on felony wire-fraud charges.”

Kennedy worked for Backhouse Fiduciary Services as an administering beneficiary trust accountant who had access to accounts through the Heritage Bank located at 150 Almaden Blvd in San Jose, California. In June of 2010 Kennedy began to take funds from accounts he was executing, transferring funds into his personal bank accounts for the sum of $2,370,377.12.

It is alleged that Kennedy knowingly transferred and/or stole funds from customer accounts and transferred the money into his own personal accounts to buy homes and live lavishly from while representing himself as a millionaire investor.  Kennedy also used the stolen money to invest in two start-up companies,  Orion’s Digital Technology and Validus Technologies.   Kennedy had a particular interest in developing new software technologies that  “generates one-time-use credit card numbers on a user’s smartphone.”

Orion’s Digital Technology website reads, “Our initial targets are these government agencies— primarily, governmental organizations with a vision for how digital media will help them achieve more through technology and with data collection sensors already deployed that are overwhelming their current solutions and resources”.

Kennedy pleaded not guilty and was released from custody upon issuance of a $50,000 appearance bond.  A public Defender has been assigned to this case on behalf of Mr. Kennedy.  Kennedy’s next court hearing is scheduled on January 9, 2013.

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Financial interest turns to misdirected funds was last modified: January 11th, 2019 by admin
Categories: Santa Clara