New Jersey Hedge Fund Owner Gets 6 Years In Prison For Fraud

July 12, 2018 - 8:04 pm

NEWARK, N.J. (WCBS 880) -- It was sentencing day Thursday for the owner and manager of a New Jersey hedge fund who defrauded 2 investors out of $4 million.

Nicholas Lattanzio is headed to federal prison, sentenced to 6 years and ordered to pay nearly $4 million in restitution after his conviction on wire and securities fraud.

Prosecutors said Lattanzio, 62, of Montclair orchestrated a large-scale scheme involving his Black Diamond Capital Appreciation Fund and several other related entities. It allowed him to collect millions in upfront fees from two corporate investors who were promised future loans or investment opportunities that never materialized.

The feds said Lattanzio used the money to pay himself more than a $500,000 annual salary and to buy a $1 million home and pay off $500,000 in credit card debt.