DEBRA W. YANG
United States Attorney
Central District of California
Thom Mrozek, Public Affairs Officer
February 1, 2005
CON MAN SENTENCED TO 15 YEARS FOR RUNNING MEDICAL DEVICE INVESTMENT SCAM
A Woodland Hills man has been sentenced to 15 years in federal prison for operating a scam that purportedly offered investments in medical scanning equipment.
Kenya Markisha Hutson, 30, was sentenced yesterday by United States District Judge John F. Walter, who described the defendant as a "sociopath." In addition to the prison term, Judge Walter ordered Hutson to pay 37 victims restitution totaling $1,356,500.
The sentencing stems from Hutson's operation of E-Med, the front company that he used to steal more than $1.3 million from investors who were falsely led to believe their investment money would be used to refurbish and market state-of-the-art body scanning devices. Hutson told his victims that the body scanners would be sold to medical facilities across the United States, including Loma Linda University Hospital and the UCI Medical Center. Instead of using the money as promised, Hutson used nearly all of the money to finance his lavish lifestyle, which included purchasing luxury automobiles, jet skis, and an extravagant home.
In June 2004, Hutson was convicted by a jury on 14 counts of mail and wire fraud.
At Monday's sentencing hearing, Judge Walter recounted how Hutson pretended to befriend and then defrauded a recent widow who was undergoing chemotherapy treatment for cancer. The Court also noted how Hutson victimized an elderly woman with little investment experience who was living on a fixed income while caring for her handicapped adult children. Judge Walter also found that Hutson obstructed justice when testifying in his defense at trial, describing Hutson's testimony as "preposterous" and his demeanor as "smug."
The case against Hutson was the product of an investigation by the Federal Bureau of Investigation. During the investigation, authorities seized Hutson's Woodland Hills home worth approximately $1.3 million.
Release No. 05-020
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