PORTLAND – A grand jury has returned a second indictment against Kaile Warren, the founder of the Rent-A-Husband handyman business.

But the charges made against Warren last week are almost identical to the original charges that were lodged against him in December. The 50-year-old Windham resident still faces felony counts of securities fraud, theft by deception and sales of unregistered securities.

The only new allegations are that Warren failed to tell some investors that he had been sued for selling unregistered securities, and that he didn’t tell investors in 2008 and 2009 that his lawyer had advised him to stop selling promissory notes.

In a court hearing last month, prosecutor Michael Colleran said the state was pursuing additional charges in connection with the investigation.

Warren asked to waive his constitutional right and testify before the grand jury, which is highly unusual for a defendant in a criminal proceeding.

He told his side of the story to the grand jury Thursday.

Warren will be arraigned on the new indictment. A court date has not been set.

Colleran declined to comment on the case Monday. He said he is prohibited from discussing grand jury proceedings.

Warren founded Rent-A-Husband in 1996 and gained national media attention for his franchise concept, including multiple appearances on “The Oprah Winfrey Show” and a contract to appear regularly on CBS’ “The Early Show.”

State securities regulators say Warren misled investors by misrepresenting the financial condition of Rent-A-Husband, used a substantial portion of his investment money for personal expenses, and failed to inform new investors about money that he owed to prior investors.

According to the Maine Office of Securities, Warren owes more than $1.6 million on promissory notes.

Warren maintains he did not misrepresent the performance of his company, investors knew the risks involved, and the investment agreements were handled by his lawyers.

 

Staff Writer Trevor Maxwell can be contacted at 791-6451 or at: [email protected]