A Utah hedge fund manager has admitted to defrauding investors of more than $30 million.
Thomas Repke pleaded guilty to conspiracy two weeks before his trial was to begin in Atlanta federal court. Repke and his co-conspirator, James Jeffery, were charged last December; Jeffery pleaded guilty in April.
Repke’s and Jeffery’s Coadum Capital ripped off more than 100 investors, prosecutors said. The two allegedly promised 5% month return, but actually stole more than $20 million of the money raised, transferring it to accounts in Switzerland and Malta, rather than investing it in hedge funds allegedly run by a Malta-based trader. According to prosecutors, only a fraction of the almost $40 million raised by Coadum was left by the end of 2007.
Coadum also made Ponzi scheme payments, prosecutors say.