New York (HedgeCo.net) – Thomas Repke, of Salt Lake City, Utah, pleaded guilty to conspiracy to commit fraud. His codefendant and former business partner, James Jeffery of  Ontario, Canada, pleaded guilty in April 2011. The jury trial was scheduled to begin on January 3, 2012.

Repke and Jeffery were the principals of a Utah-based hedge fund operator known as Coadum Advisors, which drew hundreds of investors nationwide into a series of investment funds from 2005-2008. The defendants pleaded guilty to conspiring to defraud their investors by lying to them about how their money was invested, what returns were being earned, and what balances investors held.

“Today, the lead defendant in a major international investment fraud scheme pleaded guilty to participating in a conspiracy that defrauded over 200 victims from across the country out of tens of millions of dollars, most of which was dissipated in overseas accounts.” United States Attorney Sally Quillian Yates said, “Like so many investment fraud schemes, this one was targeted at seniors, retirees, and others simply looking for safe and secure returns. The Financial Fraud Task Force will continue to root out fraud to restore faith and confidence in our investment system.”

Coadum Capital operated from 2005 through early 2008, which at its height attracted nearly 250 investors and nearly $40 million in investments. Coadum offered shares in hedge funds and advertised monthly returns often exceeding 5 percent.

Repke and Jeffery are said to have transferred over $20 million overseas to accounts in Switzerland and the Mediterranean island of Malta, paying themselves approximately $500,000 in cash over a two year period.

They each pleaded guilty to a conspiracy charge, which carries a maximum sentence of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for February 29, 2012.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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