Coadum Fraudsters Jailed For $30 Million Scam

Mar 2 2012 | 5:16am ET

A pair of hedge fund fraudsters was sentenced to a combined 17 years and three months in prison for ripping clients off to the tune of more than $30 million.

A federal judge in Atlanta sent Thomas Repke up the river for a decade and James Jeffrey for more than seven years. Both men were also ordered to serve five years of supervised release there after and were hit with $29.7 million in restitution.

According to prosecutors, Repke’s and Jeffery’s Coadum Capital ripped off more than 100 investors. 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, authorities say.

Both Repke and Jeffery pleaded guilty last year.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note