SEC Freezes Assets of Massachusetts Advisor Accused of Fraud
The SEC has frozen the assets of a Massachusetts-based investment advisor charged with stealing over a million dollars from at least a dozen clients who falsely believed they were investing in a hedge fund.
According to the SEC’s complaint, Gregg D. Caplitz and Wilmington-based Insight Onsite Strategic Management (IOSM) raised at least $1.1 million from clients who were told their funds would be invested in either a purported hedge fund, Insight Onsite Strategic Fund, LP, or one of the fund’s purported mangers, Insight Onsite Strategic Partners, LLC. Investors allegedly were directed to send their money to a bank account held in IOSM’s name.
The investments, however, were nothing but scams, says the SEC. Instead of investing the funds as promised, the complaint alleges that Caplitz and IOSM transferred control of the investors’ funds to a Nevada company (The Knew Finance Experts, Inc.) and its officers, who allegedly used the funds for their personal purposes.
“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,” said Julie M. Riewe, Deputy Chief of the SEC Enforcement Division’s Asset Management Unit.
The complaint also accuses Caplitz of illegally obtaining funds from at least one of his long-time clients by wiring funds from her IRA to IOSM’s bank account after she had declined to invest in the Insight Onsite Strategic Fund. To learn more, access the SEC complaint for Gregg D. Caplitz and Wilmington-based Insight Onsite Strategic Management (IOSM) here.