F.C. Developer Todd Hitt Surrenders to FBI on Securities Fraud Charges

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https://fcnp.com/2018/10/05/f-c-developer-todd-hitt-surrenders-fbi-securities-fraud-charges/

F.C. Developer Todd Hitt Surrenders to FBI on Securities Fraud Charges

October 5, 2018 3:10 PM0

Real estate developer Todd Hitt, CEO of Falls Church-based Kiddar Capital, surrendered to the FBI Friday on an outstanding arrest warrant in connection to securities fraud charges, according to the U.S. Department of Justice.

Hitt, whose company is co-developing the big, new mixed-used project at Rt. 7 and 29 in the City, is alleged to have falsely claimed Kiddar Capital managed $1.4 billion in assets and had offices in Houston, Palm Springs and London and failed to disclose extravagant spending, such as the leasing of private jets and the purchase of sports tickets and jewelry, according to a report in the Washington Business Journal.

The DOJ complaint, says the Business Journal, alleges that Hitt raised over $16 million from investors by misrepresenting that he would invest $6 million in a planned $33 million purchase of a Herndon building near a future Metro stop.

The Business Journal also reports that in a complaint filed in the U.S. District Court for the Eastern District of Virginia, the SEC alleges that Hitt made misrepresentations about his own investments and misappropriated several million dollars of investor funds to support what the agency described as his extravagant lifestyle and make “Ponzi-like payments to prior investors.”
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The affidavit also alleges Hitt used $230,000 is funds to pay off a credit card bill with charges from “Bulgari,” “Catier,” “NBA – Washington Wizards” and “Ultimate Jet Vacations.”
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1. Link to the DoJ PR

https://www.justice.gov/usao-edva/pr/fairfax-man-arrested-16-million-securities-fraud-scheme

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2. And from the SEC

https://www.sec.gov/news/press-release/2018-229

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As alleged in the SEC’s complaint, over at least a four-year period, Todd Elliott Hitt used two of his companies – Kiddar Capital LLC and Kiddar Group Holdings, Inc. – to raise more than $20 million from investors for the purpose of acquiring and operating the Silver Line office building, new home construction in Northern Virginia, and a fund managed by Hitt that invested in a startup business. The SEC alleges that Hitt made misrepresentations about his own investments in the ventures and misappropriated several million dollars of investor funds to support his extravagant lifestyle and make Ponzi-like payments to prior investors.

As part of his settlement with the SEC, the terms of which remain subject to court approval, Hitt consented to entry of a judgment freezing his assets and imposing conduct-based injunctions that enjoin him from participating in the offer or sale of interests in real estate development companies. Hitt also has consented to the appointment of a receiver over a number of the corporate defendants and relief defendants. Under the terms of the proposed settlement, the receiver would protect investors, prevent asset dissipation and loss, and attend to the businesses. Penalties and disgorgement would be determined by the court at a later date.
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