WESTLAKE VILLAGE : 3 Brothers Deny Guilt in Fraud Case
Three brothers accused of bilking investors out of more than $2.3 million pleaded not guilty Monday in Ventura County Municipal Court.
Charles E., James A., and Kenneth R. Fuentes, principals in the defunct Fountain Oil & Gas Co. formerly based in Westlake Village, are accused of grand theft, securities fraud and selling unregistered securities.
According to court records, the brothers promised investors that their money would be used to drill gas wells in the Sacramento Valley. But some of the money was used to pay off other obligations, including personal expenses for such things as expensive clothes and a Rolls-Royce automobile, investigators said.
About 150 investors lost between $15,000 and $240,000 each in their dealings with Fountain, investigators said.
Judge Barry B. Klopfer scheduled a preliminary hearing for Nov. 18. The brothers are being held in Ventura County Jail on $250,000 bail each.
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