BRIDGEPORT, Conn — A federal grand jury in Bridgeport returned a six-count indictment on Thursday charging Kevin Kolenda, 66, of Norwalk with fraud offenses related to the operation of Hole-In-Won LLC, a prize insurance business, prosecutors say.
Kolenda was arrested on Friday morning and pleaded not guilty before being released on a $50,000 bond. He allegedly defrauded dozens of organizations and individuals out of nearly $1 million.
An indictment charged Kolenda with six counts of wire fraud, an offense which carries a maximum imprisonment term of 20 years per count, the U.S. Attorney’s Office for the District of Connecticut said.
Prosecutors said that “Hole In Won” provided prize insurance to customers who offered promotions or prizes at events such as golf tournaments and fishing contests, adding that the business used a website to claim it was “the most successful prize insurance company in the world” and that it had “paid out thousands of awards to winners.”
According to the indictment, Kolenda allegedly defrauded clients of approximately $850,000 in insurance premiums paid under false pretenses and over $100,000 in prize costs that his business failed to pay.
Victims of the scheme often included charitable or civic organizations, and they obtained insurance from Kolenda and Hole In Won for one or more prizes at an event, prosecutors said. The host of a golf tournament might include an expensive prize like a new car for any player who hits a hole in one on a specific hole, and the host would complete an insurance contract and pay the premium to Kolenda.
Kolenda would allegedly promise to pay out the insurance claim for the cost of the insured prize if there was a winner at the event, and if no one won the prize, Kolenda and his business would keep the premium.
The indictment also alleges that Kolenda often used numerous fraudulent techniques to avoid payment of the claim if someone won the insured prize. Prosecutors said he made excuses to victims, saying that Hole in Won did not have to pay off the cost of the claim and referred victims to the Hole In Won “claims department” in Wahington D.C. -- which did not exist.
Kolenda allegedly threatened victims with illegitimate legal action and reputation harm if they continued seeking payment of the claim, prosecutors said, noting that he would ultimately stop responding to victims while refusing to pay out the cost of the insured prize.
To avoid reputational harm and potential legal action, the victim host or organization, or its partners, would often pay the cost of the insured prize themselves, prosecutors said.
Prosecutors did note that an indictment is not evidence of guilt and that charges are only allegations, adding that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Federal Bureau of Investigation is investigating the case, which is being prosecuted by Asst. U.S. Attorney Ross Weingarten.
Individuals or organizations who consider themselves victims of this alleged scheme are encouraged to contact the FBI’s New Haven Division at 203-777-63111.
Dalton Zbierski is a digital content producer at FOX61 News. He can be reached at dzbierski@FOX61.com.
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