According to reports, Gregg Caplitz, an investment advisor from Wilmington, Massachusetts, recently received a three-and-a-half year prison sentence for allegedly telling clients he would invest their money in a hedge fund but instead diverting the funds to his business partner and other members of her family who spent it on personal expenses.

The report indicates that Gregg Caplitz was also ordered to pay $1.89 million in restitution to victims he defrauded.

Caplitz first pled guilty to conspiracy, investment adviser fraud, making a false filing with the SEC and wire fraud in April 2014.

He and his business partner, Rosalind Herman, were indicted in March 2012. The indictment alleged that Caplitz fraudulently induced clients to entrust their savings and other funds to him by falsely representing that funds would be invested and managed for the clients’ benefit, yet he purportedly diverted client funds to benefit himself and Herman.

Herman was convicted of conspiracy, investment adviser fraud, wire fraud and a tax-related charge in April.

In March 2013, the SEC filed a civil injunctive action and obtained an asset freeze against Caplitz and Insight Onsite Strategic Management, Herman’s investment advisory firm.

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