Todd Hitt Facing 20 Years in Prison for $30 Million Fraudulent SchemeWednesday, March 27, 2019
Todd Hitt, a well-known northern Virginia businessman and founder and CEO of Kiddar Capital, a self-described asset management firm based in Falls Church, pleaded guilty to eight counts of securities fraud in a federal court in Alexandria.
According to the plea deal announced on February 13, 2019 by the Department of Justice, Hitt solicited $30 million from investors from 2014 to August 2018, raising more than $16 million from investors by misrepresenting that the funds would be used by Kiddar Capital to purchase a Herndon office building next to a future stop on the Washington D.C. Metro silver line. The complaint also stated that Hitt not only made misrepresentations, including falsely claiming that Kiddar Capital managed $1.4 billion in assets and held offices in Houston, Palm Springs, and London, but he also failed to disclose his extravagant spending to investors. Hitt used a portion of investor funds to lease private jets and purchase jewelry and sports tickets, among other things. Further, the Department of Justice claims that Hitt comingled a significant portion of investors’ funds with other unrelated investment projects and that he used new investor’s funds to pay off old investors in a Ponzi-like scheme.
Hitt is facing a maximum penalty of 20 years in prison and a $5 million fine if convicted. The Department of Justice stated that they would offer a plea deal of 6.5 years in prison if Hitt paid $20 million in restitution within two weeks of his sentencing date that is scheduled for June 21, 2019.
Hitt has already reached a civil settlement with the Securities and Exchange Commission (SEC) to resolve charges that he was defrauding millions from investors regarding the Herndon office building. To fulfill this settlement, courts appointed a receiver to handle assets of Kiddar Capital Richmond.
If you invested and lost money in Todd Hitt’s fraudulent scheme at the advice of a broker, attorney, insurance agent, financial advisor, or CPA, you may be able to recover. Since 1998, the experienced attorneys at Chapman LLC have been fighting for victims of investment fraud and broker misconduct. Call us today at 1-877-410-8172 for a free consultation.