Klatch Denied Bail As FBI Suggests Racketeering Charges

Sep 27 2011 | 12:27pm ET

Accused hedge fund fraudster Anthony Klatch could face decades in prison under possible new charges the government could lay at his feet.

The Federal Bureau of Investigation and federal prosecutors could add racketeering charges to the conspiracy, fraud and money laundering counts that Klatch already faces, an FBI agent said last week. Prosecutors said that could land the 27-year-old in jail for up to 20 years.

Ryan Kennedy also testified that Klatch appeared to be moving money around, potentially preparing to flee. The FBI special agent cited a $200,000 attempted transfer to a Bahamian bank account just hours after the Commodity Futures Trading Commission won an asset freeze against Klatch in July. The FBI also found a backpack with $25,000 in Klatch's Tampa, Fla., condominium.

In light of the evidence, U.S. Magistrate Judge Katherine Nelson upheld an earlier court order that Klatch be held without bail, saying that "he clearly has the means and intelligence to effect flight out of this district."

Klatch has been held on $200,000 bail since his arrest in August on charges that he ripped investors in his TASK Capital Partners off to the tune of $2.3 million. Klatch and his late partner, Timothy Sullivan, are accused of lying to TASK investors. The duo 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.

Klatch's lawyer, Dom Soto, said he would appeal the ruling.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.