David Kaplan, Investment Fraud, Colorado 2019

A 52-year-old attorney from Nevada has been charged with investment fraud in a scheme that allegedly defrauded investors out of millions of dollars.

David Kaplan, of Zephyr Cove, Nevada, appeared in a Colorado federal court on Tuesday, June 4, 2019, after being transferred from Reno, Nevada, where he was arrested for securities fraud, wire fraud, mail fraud, and money laundering.

According to the indictment, Kaplan operated a scheme to defraud investors by making false and fraudulent representations about off-shore investments with guaranteed returns of up to 10% per month.

Kaplan allegedly used entities, including charitable organizations, which he established and controlled as part of the scheme. He also used his position as an attorney to gain the trust of investors and used his attorney trust account to create the pretense that investor monies were held in trust.

Kaplan made payments to investors to lull them into a sense of legitimacy and to encourage the recruitment of additional investors. However, he used the money for personal expenses and to fund entities, corporations, and foundations he controlled.

Kaplan is charged with 7 counts of securities fraud, 36 counts of wire fraud, 9 counts of mail fraud, and 19 counts of money laundering. Each count of securities fraud carries a penalty of not more than 20 years in prison and a fine of up to $5,000,000.

The case is being investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorneys Jaime Pena and Tim Neff.

Related Federal Cases