.

Center Valley Homeowner Charged in $2.3 Million Fraud Scheme

Lehigh University graduate Anthony J. Klatch II is charged with committing fraud; mother claims family history of bipolar disorder may have played a part.

Center Valley townshouse owner Anthony J. Klatch II, 27, has been charged with conning investors out of $2.3 million. A recent article in the Wilkes-Barre Times Leader says Klatch, who also hadĀ a condo in Tampa, was indicted July 28 by a grand jury in Alabama.

The indictment is based on evidence that between April and October 2009, eight individuals invested $2.3 million in a hedge fund created by Klatch and another man, Timothy Sullivan. Investors were told that all their money was lost, when in fact Klatch hadĀ invested only 60 percent of it.

Klatch, a 2006 graduate of Lehigh University, also organized Meetup groups in the Tampa area. On his meetup page, named "Seeding and Hedge Funds," Klatch wrote:

"The purpose of this group is to link High Net Worth individuals in the Tampa Bay area related to Hedge Funds or Seeding of new financially oriented projects...all high net worth individuals interested in becoming hedge fund investors are invited to join."

Klatch also attended "Millionaire Minds," "New York Hedge Fund Networking" and "St. Pete-Clearwater Technical Trading Group" Meetups, among others. The site has him listed as an entrepreneur on the site since 2010.

The Times Leader article says Klatch's mother, Charmaine Maynard, testified on her son's behalf during his detention hearing that a history of bipolar disorder runs in the family and may have had something to do with Klatch's actions. Maynard, a well-known activist in Wilkes-Barre, has had trouble with the law in the past when she pleaded guilty to misuse of funds of her employer in 1991 and spent several months in jail.

If convicted, the article states, Klatch will forfeit the townhome, $2.3 million in cash, two luxury Land Rover vehicles, a Ferrari convertible, an Aston Martin roadster, a BMW M3 convertible and a Sea Ray boat, all purchased between 2007 and 2011.

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something