Monday, 29 August 2016
Last updated 55 min ago
Nov 2 2011 | 8:35am ET
A Florida hedge fund manager has pleaded guilty to defrauding investors of $2.3 million, stealing a substantial chunk of the money raised.
Anthony Klatch, 27, entered his plea to conspiracy, securities and wire fraud and money laundering charges on Friday, the U.S. Attorney's Office in Mobile, Ala., said. Klatch admitted that he and his late partner, Timothy Sullivan, invested only about 60% of the money they raised from seven investors for their TASK Capital Partners. The rest went elsewhere, almost $200,000 of it to Klatch's personal bank accounts.
At least that money, or some of it, can be recovered: Klatch and Sullivan lost the money they actually invested in just eight months.
Klatch agreed to forfeit $2.3 million, including a backpack with $25,000 in cash and the money in foreign banks that has seen him jailed as a flight risk since his arrest in August. He faces up to 20 years in prison, although prosecutors agreed to push for leniency in exchange for Klatch's cooperation.