Monday, 30 March 2015
Last updated 5 hours ago
Sep 13 2011 | 1:29pm ET
Accused hedge fund fraudster Anthony Klatch has pleaded not guilty to ripping investors off to the tune of $2.3 million.
Klatch, who was arrested in Florida last month, remains in custody after U.S. Magistrate Judge Katherine Nelson in Mobile, Ala., upheld his $200,000 bond. Klatch's mother said she is trying the scrape together the assets to meet that bond. Nelson also scheduled a trial in the case for November.
During the hearing, prosecutors said that Klatch still has two bank accounts in the Bahamas that are not covered by the asset freeze against him. Klatch told Nelson that he has "not been able to move those into the hands of the receiver."
Klatch, of Sugarloaf Township, Pa., 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.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…