Thursday, 26 May 2016
Last updated 2 hours ago
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.