A former certified financial planner has faced court in Massachusetts, following allegations of stealing more than US$1 million from clients and spending it at fast food outlets and casinos.
Gregg Caplitz, along with a former employee, investment adviser Rosalind Herman, appeared before the US District Court for the District of Massachusetts facing charges brought by the US Securities and Exchange Commission (SEC) of theft, fraud and making false and misleading statements surrounding an allegedly fake hedge fund.
According to court documents, the former advisers allegedly received US$1.1 million from at least 12 clients for the purposes of investment in the ‘Insight Onsite Strategic Fund’, which was spent by the advisers on personal expenses including fast food, legal fees and ATM withdrawals at casinos.
District Judge M Wolf granted the SEC’s request to have the former advisers’ accounts frozen and is assessing the claim for a jury trial.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 19 Nov 2018ClearView launches dealer services offerBy Adrian Flores
- 19 Nov 2018Lonsec introduces super research to advisersBy Sarah Simpkins
- 19 Nov 2018FASEA releases standards blueprintBy Eliot Hastie
- 16 Nov 2018Government sets $51m to pursue misconductBy Eliot Hastie
- 16 Nov 2018The financial advisers most people don’t read aboutBy James Mitchell
- 16 Nov 2018Clients expect advisers to understand their situationBy Eliot Hastie
- view all