Friday, 25 July 2014
Last updated 14 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…