(Securities & Exchange Commission) The Securities and Exchange Commission announced that on May 17, 2016, Gregg D. Caplitz, of Wilmington, Massachusetts, was sentenced to three and a half years in federal prison and ordered to pay $1.89 million in restitution to victims of his fraud. In all, more than a dozen victims lost retirement savings as a result of the fraud.
Caplitz and his business partner, Rosalind Herman, were indicted in March 2012 and additional charges were added by a superseding indictment returned in March 2013. The indictment alleged that Caplitz fraudulently induced clients to entrust their savings and other funds to him by falsely representing that the funds would be invested and managed for the clients’ benefit, and that he diverted client funds to benefit himself and Herman. On April 3, 2014, Caplitz pled guilty to conspiracy, investment adviser fraud, making a false filing with the SEC, and wire fraud; on April 5, 2016, a federal jury in Massachusetts convicted Herman of conspiracy, investment adviser fraud, wire fraud and a tax-related charge.
