Campbell man accused of stealing $7M from Japanese investors

SAN FRANCISCO (BCN)—A Campbell man has been accused in federal court in San Francisco of stealing $7 million from Japanese investors he promised a high-reward, low-risk investment opportunity.

Kevin Kyes, 68, was arrested Wednesday and appeared in court along with his alleged accomplice, 72-year-old John Holdaway of Sandy, Utah. The two men have been indicted on two counts of conspiracy each, 18 counts of wire fraud, and five counts of monetary transactions in property derived from unlawful activity.

According to prosecutors, they offered a group of Japanese investors an opportunity to invest through a group of entities they controlled and called “Money Management Strategies” or “MMS.”

They promised the funds would be invested in currency or derivatives trading with returns of 100 percent annually, and that the investment would be safe as all trading losses would be borne by MMS.

But in reality, once the money was wired to their bank accounts in Northern California, Keys and Holdaway spent the money themselves, paid back other investors, made payments on a civil settlement and invested in gold-related businesses, according to prosecutors.

After their initial appearance in court Thursday, Kyes and Holdaway were released pending further hearings. Holdaway is set to return to court on June 28 and Kyes is scheduled to return on July 22.

If convicted, the two men could face lengthy prison terms for the scheme. The maximum penalty for each count of wire fraud is 20 years in federal prison.

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