Hedge fund owner gets 6-year prison sentence for $4M fraud
NEWARK, N.J. (AP) — The owner and manager of a New Jersey hedge fund who defrauded two investors out of $4 million is now headed to federal prison.
Nicholas Lattanzio received a six-year sentence Thursday. He also must pay $3.93 million in restitution.
The 62-year-old Montclair man was convicted of wire and securities fraud. Prosecutors say Lattanzio orchestrated a large-scale scheme through which he, his Black Diamond Capital Appreciation Fund and several other related entities collected millions in upfront fees from two corporate investors who were promised future loans or investment opportunities that never materialized.
Prosecutors say Lattanzio used the money to pay himself more than $500,000 in salary and for numerous personal expenses, including the purchase of a $1 million home in Montclair and payment of $500,000 in credit card debt.