Wednesday, 27 August 2014
Last updated 2 hours ago
Sep 8 2011 | 12:25pm ET
Accused hedge fund fraudster Anthony Klatch is to be arraigned this week.
Klatch was arrested in Florida in July, just a day after his indictment in Mobile, Ala. The Sugarloaf Township, Pa., man and a partner are accused of misleading investors about their TASK Capital Partners, which solicited more than $2.3 million from eight investors, half of them in Alabama.
Klatch and Timothy Sullivan allegedly told investors that the fund, which they founded in 2009, had already been in business for 12 years. Their prospectuses were also filled with other "material misrepresentations and material misleading omissions," the indictment alleges.
According to prosecutors, Klatch and Sullivan, who each invested a whole $1 in TASK, invested only about 60% of the money they raised by the end of 2009, losing everything on a handful of spectacularly bad investments, at least two of which posted big losses in just minutes. The rest of the money was used to "pay off the angry investors" or simply funneled into Klatch's "personal bank account," prosecutors say.
Rather than coming clean, in January 2010 Klatch and Sullivan told investors that "their entire investment had been lost in a single trade."
If convicted on all 18 counts, Klatsch faces up to 330 years in prison.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...