Hedge Fund Fraudster Klatch Pleads Guilty

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.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note