27-Year Old Allegedly Defrauded Investors Out Of $2.3 Million And Bought Fancy Cars Because He's Bipolar, Says mum

20 seven-year old Anthony J Klatch II allegedly defrauded investors out of $2.3 million, bought a fleet of fancy cars, a Bernie Madoff-style condo and a boat because he’s bipolar, says his mum.

Charmaine Maynard, Klatch’s mum, told prosecutors at a hearing on Tuesday that delusions of grandeur that are associated with bipolar disorder caused her son to take actions to support the life of a millionaire.

Indeed the website WebMD lists one of the symptoms of bipolar disorder as:

  • severe high and low moods
  • a tendency to make grand and unattainable plans

And it sounds like “hedge fund manager” might have been one of those unattainable plans. According to the Times Leader, the indictment of Klatch alleges that his fraud was that:

Between April and October 2009, eight investors sank a bit more than $2.3 million into a hedge fund that Klatch and [a co-conspirator, Tim] Sullivan created. Although investors were told that all of their investments had been lost in a single trade, Klatch and Sullivan had invested only about 60% of the money.

Perhaps it was with the remaining 40% that Klatch succeeded in living the dream, the life of a millionaire, for a brief time.

The indictment calls for:

Klatch to forfeit, upon conviction, $2.3 million in cash, two luxury Land Rover vehicles, a Ferrari convertible, an Aston Martin roadster, a BMW M3 convertible, a townhouse in centre Valley, Pa., and a Sea Ray boat, all purchased between 2007 and 2011.

Maybe as evidence of his behaviour, Klatch’s mum said that her son had hidden a Bernie Madoff-style condo from her. She was under the impression that he lived in a modestly-decorated townhouse in centre Valley. 

But when she arrived at his new house in Florida, according to the Times Leader:

“When I came down, it’s like Bernie Madoff lived here. … We thought his place in Florida was like his place (near) Bethlehem. … I thought he was succeeding in life,” Maynard said, adding that her son “kept finding excuses” for her not to visit him in Florida. “He knew that if I came down here, I’d catch him.”

And she did. She arrived to defend her son in court on Tuesday and claimed that his alleged fraud scheme is a result of bipolar disorder.

In court on Tuesday, Klatch admitted that he was bipolar, according to the Times Leader.

via FinAlternatives

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