SC woman pleaded guilty to fraud conspiracy targeting retirees, military pension holders

The Department of Justice says Candy Kern, 55, of Anderson pleaded guilty to conspiracy for her role in a fraudulent scheme.

COLUMBIA, S.C. (WOLO)—The Department of Justice says Candy Kern, 55, of Anderson pleaded guilty to conspiracy for her role in a fraudulent scheme.

The nationwide structured cash flow scheme exploited military veterans with financial difficulties and targeted elderly investors who were looking for a safe retirement investment, say officials.

From 2012 through 2021, Kern used a SC-based law firm she was the managing partner of to facilitate the fraud.

The scheme worked by offering veterans an up-front lump sum payment in exchange for the assignment of the veterans’ monthly pension and/or disability payments for a period of time. The pension assignment contracts were in fact void, say officials.

Retirees would then be solicited to invest in these contracts. Up-front lump sums would be provided under the false pretense that the flow of repayments by veterans over time would translate into a return for the retiree-investors, according to a press release by the Department of Justice, District of South Carolina.

Kern’s law firm received almost $1,446,336 through the scheme.  The victims lost approximately $31,352,897.26.

Kern served as the legal counsel, banker, and debt collector for the operation.