BOSTON – A Massachusetts man who defrauded clients out of $1.3 million by convincing them to invest in a hedge fund that didn't exist has been sentenced to three and a half years in prison.
Federal prosecutors say 57-year-old Gregg Caplitz, of Woburn, was also sentenced Tuesday to three years of probation and ordered to pay restitution.
He had previously pleaded guilty to charges including investment adviser fraud, wire fraud and lying to the Securities and Exchange Commission.
Prosecutors say Caplitz and a business partner pitched a hedge fund investment to their clients, but the hedge fund didn't exist and they used the money for personal expenses.
Much of the money lost by more than a dozen victims was retirement savings.
The partner has also been convicted and is awaiting sentencing.