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.