Suspect in Newport Beach Fraud Is Returned to U.S.

A Newport Beach precious metals dealer who left the country in 1981 after his company collapsed has been returned to Los Angeles from Germany to face fraud and tax evasion charges. Kent Gordon Alexander, 39, is accused of stealing millions of dollars from investors who thought they were purchasing gold and silver for future delivery. A 13-count grand jury indictment issued last March charges Alexander with 10 counts of mail and wire fraud, two counts of tax evasion and one count of applying for a passport under a false name.

Alexander is scheduled to be arraigned on the charges Monday in Los Angeles federal court. Conviction on all the charges carries a maximum prison sentence of 65 years and a $22,000 fine, according to Assistant U.S. Atty. Anita Dymant. Dymant said the indictment did not disclose the exact amount of money involved in the alleged fraud.

Dymant said in a telephone interview Thursday that Alexander left the country in July, 1981, a month after FBI agents searched and seized business records from his Newport Investment Management Corp., or NIMC Inc., as it was later known. The indictment also charges him with defrauding investors through another company, NIMC Strategic Metals Inc., which purchased metals stored in a European warehouse.

Alexander is also facing tax evasion charges of failing to file tax returns in 1980 and 1981 and for not paying about $100,000 in income taxes.

According to Dymant, Alexander went to Mexico City in July, 1981, and applied for a passport at the U.S. Embassy under the name of Robert Allen Menne. He then moved to Germany, where he was involved in a videotape cassette business; he was arrested in Germany on fraud charges, pleaded guilty and was jailed in November, 1983, she said. Dymant said Alexander’s identity was uncovered after German officials contacted the U.S. Consulate in Munich.

Dymant said Alexander waived extradition in December, 1984, and was finally returned to the United States earlier this week.