New York (HedgeCo.net) – A Utah hedge fund manager has been arraigned on multiple counts of mail fraud, wire fraud and conspiracy, relating to his operation of a Utah-based hedge fund company, “Coadum Capital.”
Thomas Repke was indicted on December 15, 2010, along with an alleged accomplice, James Jeffrey.
“This indictment alleges a major international investment fraud scheme that defrauded over 100 victims around the country out of tens of millions of dollars, most of which has been transferred to overseas accounts.” Attorney Sally Quillian Yates said, “Those who prey on the investing public in this way will continue to find themselves facing federal felony charges.”
Coadum Capital attracted over 100 investors and over $30 million in investments in 2006 and 2007. Coadum offered shares in hedge funds and advertised monthly returns of 5 percent. The indictment in this case alleges that money placed in escrow was transferred to accounts in Switzerland and the Mediterranean island of Malta, from where the money then disappeared.
The indictment alleges that investors lost approximately $30 million with Coadum. The charges carry a maximum sentence of 20 years in prison and a fine of up to $250,000 each.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.
Editing by Alex Akesson
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!