Two Charged In $30 Million Hedge Fund Fraud

Dec 28 2010 | 2:51am ET

A pair of hedge fund managers have been accused of ripping off investors of more than $30 million.

Thomas Repke was charged yesterday in Atlanta federal court with defrauding more than 100 investors in his Coadum Capital, which he ran with James Jeffery. The two men allegedly promised 5% monthly returns, but actually stole more than $20 million of the money raised, transferring it to accounts in Switzerland and Malta, rather than investing it in hedge funds allegedly run by a Malta-based trader.

Repke pleaded not guilty to mail and wire fraud and conspiracy and was released on $250,000 bond. Jeffery, who lives in Ontario, has not yet appeared on the same charges.

Both men face up to 20 years in prison if convicted.

Prosecutors say that only a fraction of the money raised by Utah-based Coadumin 2006 and 2007 was left by the end of 2007.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...