BOSTON – A Woburn woman has been convicted of defrauding over $1.3 million from investors in a brazen investment scam.
Rosalind Herman, 60, was found guilty by a jury of investment adviser fraud, tax fraud, wire fraud and conspiracy in a six-day trial at U.S. District Court in Boston.
Herman, who owned and controlled companies in Massachusetts and Nevada, pitched a new hedge fund company investment to existing clients from 2008 to March 2013. However, no hedge fund ever existed, and the investment funds obtained from clients were used to fund personal expenses for Herman, her family and her business partner, Gregg Caplitz.
Caplitz previously pleaded guilty to fraud and tax charges and testified against Herman at trial. He is scheduled to be sentenced on May 17, 2016.
The charges of investment advisor fraud and conspiracy carry a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater.
The charge of tax fraud provides a sentence of no greater than three years in prison, one year of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater.
The charge of wire fraud provides a sentence of no greater than 20 years in prison, six years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater.
U.S. District Court Judge William G. Young scheduled sentencing for June 29, 2016.
Rosalind Herman, Defendant
Exact Criminal Charges: Investment adviser fraud, tax fraud, wire fraud and conspiracy
City and State: Boston, Massachusetts
Exact Date: June 29, 2016 (sentencing)
Sentence or Outcome: Scheduled for sentencing on June 29, 2016
Dollar Amounts: $1.3 million
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Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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