Hedge Fund Fraud Exposed in Malta as Thomas Repke Pleads Guilty to Conspiracy

In a stunning turn of events, Thomas Repke has pleaded guilty to conspiracy just two weeks before his trial was set to begin in an Atlanta federal court. The former hedge fund manager and his accomplice, James Jeffery, were charged last December with fraudulently operating a hedge fund that swindled over 100 investors.

The Scam Unfolds

The scheme, orchestrated by Coadum Capital, promised unsuspecting investors a staggering 5 percent return each month. However, instead of investing their money in lucrative hedge funds, Repke and Jeffery allegedly stole more than $20 million, transferring it to secret accounts in Switzerland and Malta.

How It Worked

The duo claimed they were working with a Malta-based trader to run these hedge funds, but prosecutors argue that only a fraction of the nearly $40 million raised was left by the end of 2007. To keep investors on board, Coadum made Ponzi scheme payments, perpetuating the fraud.

Consequences

The full extent of the scam is still being uncovered, but one thing is certain - Repke’s guilty plea marks a significant victory for US prosecutors in their efforts to bring hedge fund fraudsters to justice. The case serves as a reminder of the importance of vigilance and due diligence when investing in hedge funds.

Key Points

• Thomas Repke pleaded guilty to conspiracy just two weeks before his trial was set to begin
• Coadum Capital, the hedge fund managed by Repke and Jeffery, defrauded over 100 investors out of more than $20 million
• The scam involved transferring stolen funds to secret accounts in Switzerland and Malta
• Repke’s guilty plea marks a significant victory for US prosecutors in their efforts to bring hedge fund fraudsters to justice