Hedge Fund Fraudster Gets Five Years For $2.3 Million Scam

Sep 28 2012 | 12:20pm ET

Anthony Klatch, the Florida hedge fund manager who admitted to defrauding investors of $2.3 million, was sentenced to five years in prison.

Klatch pleaded guilty in October to fraud, conspiracy and money laundering. A federal judge in Alabama sentenced him last month to five year terms on each count, but the sentences will run concurrently.

According to prosecutors, the 27-year-old Pennsylvania native 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, including almost $200,000 that went into 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.

In addition to the prison term, Klatch was sentenced to three years of supervised release and ordered to pay $2.3 million in restitution.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...