Two Charged In $30 Million Hedge Fund Fraud

Dec 28 2010 | 3:51am 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

Q&A: MackeyRMS's Chris Mackey On A High Tech Fix To Broker Votes

Jun 23 2017 | 8:17pm ET

The looming implementation of the EU’s MiFID II rules regarding research has put...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of