Our firm previously posted a blog regarding Massachusetts-based investment advisor Gregg D. Caplitz, detailing the charges against him for hedgefund fraud in which he was accused of stealing $1.3 million.
Last week, Caplitz was sentenced to serve 42 months in prison along with three years of supervised release, and to pay restitution in the amount of $1,899,203. Caplitz pleaded guilty in April of 2014 to four counts of wire fraud, five counts of filing false tax returns, conspiracy to commit investment adviser fraud, investment adviser fraud, submitting false statements to the SEC, and defrauding the United States by impeding the IRS.
At the time of the initial claim, the SEC filed a complaint against Caplitz and Insight Onsite Strategic Management (IOSM) amongst allegations that clients were told funds would be invested in either a purported hedge fund or on of IOSM’s purported managers. IOSM and Caplitz allegedly had the investors send money to a bank account in the firm’s name. According to the SEC, the investments were scams and Caplitz and the firm allegedly transferred control of the funds to The Knew Finance Experts, Inc., a Nevada-based company, and the officers allegedly used the money for their personal expenses.
He was also accused of transferring funds from a long-time client’s IRA into the bank account owned by IOSM despite the client declining to invest in the Insight Onsite Strategic Fund.