David Kaplan is facing charges for his participation in an alleged Ponzi scheme.
The Sonn Law Group is investigating allegations that David Kaplan committed misconduct. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
David Kaplan, an attorney in Zephyr Cove, has been charged with 71 counts of fraud and money laundering for his role in an alleged Ponzi scheme. Kaplan appeared before a federal judge in Denver in June of 2019. Kaplan was transferred to Colorado from Nevada, where he was arrested for securities fraud, wire fraud, mail fraud, and money laundering.
The indictment alleges that from September 2014 until April 2016, Kaplan deployed an investment scheme that generated more than $12 million in investments from various states. According to the indictment, Kaplan used his position as an attorney to gain the trust of investors and used his attorney trust account to create the pretense that the money would be held in trust at no risk.
Kaplan allegedly told investors they would receive returns of approximately 10% per month on the amount invested. For about 17 months, Kaplan made payments of that amount to the investors in order to “lull (them) into a sense of legitimacy and to encourage the recruitment of additional investors.”
More than $2 million were diverted into accounts controlled by Kaplan directly or companies he controlled. Starting in early 2015, Kaplan started sharing excuses with investors, in an attempt to explain why he was unable to continue the payments or return the original investments, which he originally said were not at risk.
Kaplan is charged with seven counts of securities fraud, 36 counts of wire fraud, nine counts of mail fraud and 19 counts of money laundering.
Each count of securities fraud carries a penalty of up to 20 years in prison and a fine of up to $5 million, according to the U.S. Attorney’s Office. Each count of wire fraud and mail fraud carries a penalty of up to 20 years in prison and a fine of up to $250,000, or twice the amount of gain or loss, whichever is greater. Money laundering carries a penalty of up to 10 years in prison, and a fine of up to $250,000 or not more than twice the amount of the criminally derived property involved in the transaction.
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The Sonn Law Group is currently investigating allegations that brokers recommended unsuitable investments. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.