Todd Hitt, the founder of Falls Church-based Kiddar Capital and a member of the prominent construction family, has been arrested by the FBI and charged with securities fraud.
Earlier this year Kiddar made several announcements to some fanfare in the local business press: bringing on the son of a well-known local real estate developer to head the company’s venture capital group, making plans to invest significantly in homebuilding projects, and planning to relocate to a new office building in Falls Church.
Today, however, Hitt is due to appear in federal court in Alexandria, facing charges that come with a maximum penalty of 20 years in prison.
The company’s Twitter and Instagram accounts have been shut down. Its Facebook page remains active but has not posted new content since August.
More on the charges via a press release from the U.S. Attorney’s Office for the Eastern District of Virginia:
A Fairfax man surrendered to the FBI on an outstanding arrest warrant today in connection with being charged with having committed securities fraud.
According to court documents, Todd Elliott Hitt, 53, is alleged to have committed securities fraud in connection with his ownership and operation of Kiddar Capital, a self-described asset management firm based in Falls Church. According to the allegations, Hitt falsely claimed that Kiddar Capital managed $1.4 billion in assets and had offices located in Houston, Palm Springs, and London. The complaint further alleges that Hitt raised more than $16 million from investors by misrepresenting that Hitt would invest $6 million as a general partner as part of a planned $33 million purchase of a Herndon building adjacent to a future stop on the Silver Line of the Washington, D.C., Metro. According to the complaint, Hitt further failed to disclose to investors his extravagant spending, which included the leasing of private jets and the purchase of sports tickets and jewelry, among other things.
Hitt, who will make his initial appearance today at 2 p.m. at the federal courthouse in Alexandria, is charged with securities fraud, and faces a maximum penalty of 20 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the charges were unsealed. Assistant U.S. Attorney Mark D. Lytle is prosecuting the case.
The case is being investigated by the FBI’s Washington Field Office, with significant assistance provided by the U.S. Securities and Exchange Commission.