Federal prosecutors indicted a Tampa-area executive of Assurance Capital Management on fraud charges for allegedly running an $18 million investment scam while he already was on probation from previous offenses related to money laundering and fraud in Alabama.
Anthony Klatch is facing one count of wire fraud for running a scheme through his company, Assurance Capital Management LLC (ACM), which he purportedly told investors was a profitable online stock trading company with more than $18 million in client funds under management.
According to prosecutors, Klatch used Assurance Capital Management as a shell company to defraud his unsuspecting investors between June and September 2015. Instead of identifying himself, Klatch allegedly pretended to be a fund manager for ACM named Larry Heim. He also is accused of falsifying financial statements and other investment material to show that the company was profitable – and that it had more than $18 million in client accounts. Assurance Capital Management held little, if any, funds itself.
Instead, Klatch either lost client money via bad trades or used it for personal expenses. Klatch told investors to wire the money directly to ACM’s account at Chase Bank to be traded. He also asked for access to clients’ accounts so he could make trades on their behalf.
In addition to Klatch’s alleged fraud, he also did not disclose to his investors that he had previously pled guilty to securities fraud, wire fraud, conspiracy, and money laundering in 2011 – charges for which he spent three years in an Alabama prison.
Because of his prior conviction, Klatch was banned by the Commodities Futures Trading Commission and the SEC from trading in stock markets.
Call a Los Angeles Securities Fraud Attorney Today
As a general reminder, you should always check your broker’s credentials through an independent source. As with the case above, people willing to commit fraud will go to great lengths, including creating falsified financial statements, to take your money.
If you invested with Anthony Klatch, Larry Heim, or Assurance Capital Management, contact a qualified attorney to discuss your options. If you suffered a loss at the hands of a financial advisor, you may have certain legal rights that require your immediate attention.
Contact an experienced Los Angeles securities fraud attorney today for a consultation to discuss your rights and options.