GLEN ROCK — A Glen Rock man was indicted today for allegedly running a pair of fake hedge funds he used to steal more than $4 million from investors.
George Seporo, 39, allegedly billed his fraudulent companies — operating under names such as "Pelt Capital" and "Caxton Capital Management" — as having access to a secret program that allowed him to invest in foreign currency, according to a statement from the U.S. Attorney's office in Newark.
However, instead of investing the funds, Seporo allegedly spent it on "high-end vehicles, luxury travel, and five-figure bar tabs." He and other co-conspirators ran up credit card bills averaging around $25,000 per month, and he once left a $4,000 tip on a tab he ran up at a Los Angeles nightclub.
He also allegedly bilked an elderly woman suffering from chronic medical issues out of her life savings by taking charge of her annuity account and convincing her to write checks, which he used for personal expenses.
Seporo is charged with 16 counts of wire fraud and a single count of conspiracy to commit wire fraud. Each carries a maximum penalty of 20 years in prison and a $250,000 fine.
He is awaiting arraignment in federal court.