Wednesday, 30 July 2014
Last updated 1 hour ago
Mar 19 2013 | 11:26am ET
A Massachusetts man dreamed up a phony hedge fund to steal more than $1 million from investors, the Securities and Exchange Commission alleges.
The regulator filed a lawsuit, unsealed yesterday, against Gregg Caplitz and his Insight Strategic Management, based in Wilmington, Mass. It said, beginning in 2009, Caplitz began to tell clients that he ran a hedge fund, and even told the SEC in filings that it had $100 million in assets.
The only problem, according to the SEC, was that it had no assets, and that Caplitz and his family used the $1.1 million he raised on themselves.
"Caplitz and his firm conjured up a hedge fund to lure longtime clients into investing substantial amounts of money that became nothing more than a slush fund to pay bills for others," Julie Riewe, deputy head of the SEC enforcement division's asset management unit, said.
Caplitz allegedly transferred the money raised to another employee of Insight, Rosalind Herman, as well as to her sons and another company.
The SEC is seeking restitution and unspecified damages against Caplitz and Insight.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…