Boston Woman Convicted in $1.3 Million Fraud Scheme

Posted on April 15th, 2016 at 3:18 PM
Boston Woman Convicted in $1.3 Million Fraud Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

After a six day trial, a Woburn, Massachusetts woman was convicted in connection with a $1.3 million scheme defrauding investors. Rosalind Herman was convicted by a jury on charges of investment adviser fraud, tax fraud, wire fraud and conspiracy. Sentencing is scheduled for June 29, 2016.

Herman and her business partner, Gregg Caplitz, owned and controlled companies in Massachusetts and Nevada providing investment advice and insurance products to individual investors. Between 2008 and 2012 the two solicited investments in a new hedge fund from existing clients. The supposed hedge fund was controlled and owned by Herman. The hedge fund did not exist, however, and the funds received from investors were used to for personal expenses. The funds came from more than a dozen investors totaling more than $1.3 million, most of which came from retirement savings.

Herman’s tax fraud charges were brought as a result of her failure to file accurate tax returns for herself and her companies. The $1.3 million in investor funds were never accounted for and she also fabricated business expenses. The report claims that, in many periods, she failed to file any tax return at all.

Herman’s counterpart, Caplitz, previously pleaded guilty to fraud and tax charges and testified against Herman at trial. He is to be sentenced on May 17, 2016. The potential penalties for investment adviser fraud, tax fraud, wire fraud, and conspiracy could, in sum, reach more than 30 years imprisonment and $500,000 in fines. In most cases, however, sentencing for federal crimes are less than the maximum. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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