Greenwich resident Samuel Klein has been indicted in federal court for his role in an investment fraud scheme.
The indictment charged Klein with making false representations to a New York-based investor who believed their funds were being invested in distressed debt. The investor wrote a $200,000 check to Visual Group LLC, and Klein later exacted another $50,100 from the investor by falsely claiming it was needed for the purchase of title insurance.
Klein transported the investor”™s money to Connecticut and deposited the funds into a bank account in the name of Visual Group LLC. However, the funds were never used for the purpose stated by Klein, who instead utilized the money for personal use and other expenditures.
Klein”™s indictment covers one count of interstate transportation of property taken by fraud and one count of money laundering. Both offenses carry a maximum term of imprisonment of 10 years. Klein was released on a $500,000 bond.
