Wednesday, May 18, 2016
BOSTON – A Woburn man was sentenced yesterday in U.S. District Court in Boston in connection with multiple charges of investment adviser fraud.
Gregg D. Caplitz, 57, of Woburn, was sentenced to 42 months in prison, three years of supervised release and ordered to pay restitution of $1,899,203. In April 2014, he pleaded guilty to conspiracy to commit investment adviser fraud, wire fraud, submitting false statements to the SEC, defrauding the United States by impeding the IRS, investment adviser fraud, submitting false statements to the SEC, four counts of wire fraud, and five counts of filing false tax returns.
From 2008 to March 2013, Caplitz and his business partner, Rosalind Herman, pitched a new hedge fund company investment to existing clients. The purported investment was billed by Caplitz and Herman as a hedge fund company owned by Herman. No hedge fund ever existed, however, and the investment funds obtained from clients were used to fund personal expenses for Herman, her family and Caplitz. In total, more than a dozen victims lost more than $1.3 million in savings, most of which were retirement savings.
In April 2016, Herman was convicted of investment advisor fraud, tax fraud, wire fraud and conspiracy following a six-day trial. Sentencing is scheduled for June 29, 2016.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. The case was prosecuted by Assistant U.S. Attorney Sara Miron Bloom of Ortiz's Economic Crimes Unit.
Department of Justice
U.S. Attorney’s Office
District of Massachusetts
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