Man behind 500 million fund has no criminal record, says lawyer who helped lead investigation of alleged fraud article A former financial adviser who has been accused of manipulating the portfolio of a wealthy investor says he doesn’t intend to steal from anyone.
Robert T. Kappelman, 65, of Los Angeles, has pleaded not guilty to four counts of securities fraud in federal court in Washington, D.C.
Kappelman was charged in October with two counts of wire fraud and one count of conspiracy to commit securities fraud.
He is charged with stealing more than $500.5 million in assets from two investment funds run by the former chief executive of a company that was later acquired by the company.
He has pleaded guilty in that case.
Kapelman has previously denied the allegations, and his attorney has said that the criminal complaint against him is politically motivated and lacks factual basis.
Kapps claims the complaint is based on false statements by the prosecutor, who used his position to seek to obtain a conviction on his behalf.
Kapps was arrested in September 2015 and accused of defrauding investors through his Kappels Financial Group, Inc. (KFPI), a fund run by his brother, Bob Kappel, who was also arrested on a charge of wire and mail fraud in 2014.
Prosecutors say Kapples investment firm, which he controlled for years, defrauded investors by charging fees to clients that they paid to invest in the fund.KAPELMAN SAYS HE’S NOT A SCAMMERKappels fund is owned by the Kappells family.
Bob Kapps is an executive vice president and chief operating officer.
He did not return calls seeking comment.
He was arrested last year in Los Angeles on a separate charge of conspiracy and was later sentenced to 18 months in federal prison.
The complaint against Kapplers fund alleges that Kappell’s company, Kappeltis Investments, used an elaborate system to rig the fund’s performance.
The fund paid fees to the Kapps family to invest their money in it, prosecutors say.
Koppell said he was never involved in the fraud and that his brother and former chief operating executive, Tom Kappelli, acted as a broker.KAPPELIS INVESTMENTS CLAIMS TO BE AN INVESTOR’S GUILTY GUILDERKappell says that his fund was not used for any improper purpose, but was used to invest the funds of investors who were not actively invested in the stock market.
Koppell claims that Kapps investments were manipulated by the hedge fund to make the fund more attractive to investors.
The funds were supposed to pay fees to Kappello to help fund their investments.
The fees, Koppells claim, were not collected and were never used to fund the investment, according to court documents.
KAPELIS SECURITIES FIRM ADMITS INJURY TO BENOVATED KAPELLIS FINANCIAL INSTITUTE’S ADMISSIONS ARE AN INVICTIMIZATION, NOT A CRIMINAL PUNISHMENT.
Kapoels charges against him were dropped last month, but the SEC sued him for defamation and defamation of character and for violating its rules.
Kapoels’ attorney, Robert B. Sallinger, declined to comment on the case.
KAPPELERS SECURITY INVESTMENT INSTITUTION IS CONFUSED ABOUT THE CONFLICT.