Greenwich Resident Admits Defrauding Investors of Nearly $1.5 Million
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that SAMUEL KLEIN, 65, of Greenwich, pleaded guilty today to fraud and money laundering offenses stemming from an investment fraud scheme.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Robert A. Richardson occurred via videoconference.
According to court documents and statements made in court, Klein controlled several different entities, including Visual Group LLC; O.S. Management, LLC; KF Pecksland LLC; Four Pines Holdings, LLC; and Payton Lane NH, Inc. In 2018, Klein made false representations to a victim investor, including that the victim’s funds would be invested in distressed debt, when Klein knew that all of the investment funds would not be used for the stated purposes. Based on these false representations, the victim investor wrote a check in the amount of $200,000 to Visual Group LLC for the purpose of making a purported investment in distressed debt. Klein caused the check to be transported from New York to Connecticut and deposited into a bank account in the name of Visual Group LLC. Klein subsequently solicited and received approximately $50,000 in additional funds from the victim investor.
The investigation further revealed that, from approximately July 2016 through at least June 2019, Klein defrauded three additional victim investors of a total of more than $1.2 million by making multiple false statements and misrepresentations.
Klein knew that all of the funds solicited from the victim investors would not be used for his stated purposes, and instead would be utilized by Klein for personal and other expenditures.
Klein pleaded guilty to one count of interstate transportation of property taken by fraud and one count of money laundering. Each offense carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Janet C. Hall on November 22, 2021, in New Haven.
Klein has agreed to pay restitution in the amount of $1,497,797.52.
Klein is released on a $500,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and David T. Huang.