Greenwich Man Sentenced For Defrauding Investors: Prosecutors

GREENWICH, CT — A Greenwich man was sentenced on Tuesday to three years in federal prison after prosecutors said he defrauded investors of nearly $1.5 million in recent years.

Samuel Klein, 66, was sentenced by U.S. District Judge Janet C. Hall in New Haven. Following his prison sentence, Klein will have three years of supervised release, and must pay $1.49 million in restitution.

According to court documents and statements made in court, Klein controlled several different entities, including Visual Group LLC; O.S. Management, LLC; KF Pecksland LLC; Four Pines Holdings, LLC; and Payton Lane NH, Inc.

In 2018, prosecutors said Klein "made false representations" to a victim investor, which included telling the victim their money would be invested in distressed debt when that wasn't true.

The victim investor wrote a check for $200,000 to Visual Group LLC for the purpose of investing in distressed debt. Klein then had the check transported from New York to Connecticut and deposited into a bank account in the name of Visual Group LLC, prosecutors said.

Klein then solicited and received approximately $50,000 in additional funds from the victim, according to prosecutors.

An investigation also found that from approximately July 2016 through at least June 2019, Klein defrauded victim investors of a total of more than $1.2 million "by making multiple false statements and misrepresentations," prosecutors said.

"Klein knew that all of the funds solicited from the victim investors would not be used for his stated purposes, and instead would be utilized by Klein for personal and other expenditures," prosecutors added.

Klein pleaded guilty on Aug. 30, 2021 to one count of interstate transportation of property taken by fraud and one count of money laundering. Klein had been released on bond, but was remanded to custody following Tuesday's sentencing.