On June 2, Carlton P. Cabot and Timothy J. Kroll, respectively the former CEO and COO of Cabot Investment Properties LLC (“CIP”), were arrested for participating in a scheme to defraud investors in numerous CIP-sponsored real estate investments.  Cabot and Kroll are charged with misappropriating over $17 million to pay for personal and business expenses and concealing their misappropriations by providing false and misleading financial reports to investors.  The criminal complaint alleges that Cabot and Kroll engaged in a scheme to defraud investors by misappropriating funds belonging to tenants-in-common investments.  United States v. Cabot and Kroll,15-mag-1851 (S.D.N.Y.).  DOJ Press Release