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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note