A Woburn investment advisor has been sentenced to seven years in prison for helping to convince clients to invest more than $1.3m in a bogus hedge fund company and using their money for personal expenses.
Boston Business Journal reports that Rosalind Herman, 61, was also sentenced to three years of supervised release and to pay $1.8m to the investors. A Boston jury had found her guilty of adviser fraud, tax fraud, wire fraud and conspiracy charges in April.
For five years, Herman and her business partner, Gregg Caplitz, told investors about a new hedge fund company, supposedly owned by Herman, that did not in reality exist, according to prosecutors. The duo took the $1.3m they received from investors and spent it on themselves and family members, prosecutors said.
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