- A Belgian man was sentenced to five years in prison for a $5-million Ponzi scheme.
- Kenny Dirk Van Der Spek defrauded 75 investors in Utah from 2017-2023, federal prosecutors say.
- He must pay $4.1million in restitution, forfeit property and serve three years probation.
SALT LAKE CITY — A Belgian man was sentenced Thursday to five years in prison for conducting a $5-million Ponzi scheme in Utah.
Kenny Dirk Van Der Spek, 36, was living in South Jordan when he defrauded 75 investors over five years and used $3 million of the profits on personal purchases. In May, he pleaded guilty to securities fraud, wire fraud and money laundering.
In addition to his imprisonment, Van Der Spek was ordered to pay $4,107,282.97 in restitution to the victims; forfeit real estate in Martinsville, Virginia, and Spanish Fork; and serve three years on probation.
From 2017 to 2023, Van Der Spek operated K & K Strategies LLC, which he marketed as a "mom and pop hedge fund." The company's "purported business purpose was to help people who were not wealthy invest and to teach about stock trading," charges state. Federal prosecutors stated that he specifically targeted "smaller investors" who had little to no safety nets.
Van Der Spek was not licensed to sell securities and made false promises about returns on investments to his investors. He fabricated financial records to prove to investors they were making money, including displaying a "live stream" of trades on his website so investors could "watch (their) money grow," according to court documents.
"To convince investors and potential investors ... Van Der Spek used investment money from one investor to pay the promised returns to a different investor. In this way, defendant Van Der Spek created the false impression that the investment was profitable, that the investment was safe and secure, and that the promised returns were being generated," court documents state.
In reality, the investors were not making any profits, and Van Der Spek was using the investment proceeds to pay for his own real estate, a personal chef, a new 2022 Chevrolet Corvette, online gambling and more.
"It was the object of the scheme ... to fraudulently obtain money from investors through false statements, misrepresentations, deception, fraudulent conduct and omissions of material facts, and thereafter cause the money to be diverted for defendant Van Der Spek's personal benefit," the charges state.
The Utah Division of Securities received complaints about Van Der Spek, which led to an investigation into his fraudulent activities and ultimately resulted in his arrest and conviction, a statement from the U.S. Attorney's Office for Utah said.
"This was not a crime of opportunity. Van Der Spek specifically planned and targeted vulnerable investors and caused substantial financial hardships for victims in Utah and other states," said Acting U.S. Attorney Felice John Viti of the District of Utah. "Stealing hard-earned money from our citizens is a serious offense."
