The Hedge Funds Weblog
$100 Million Hedge Fund Fraud = 6 Years
Former hedge fund manager Marvin Friedman has been sentenced to 6 years in prison two years after pleading guilty to defrauding investors out of more than $100 million dollars.
Friedman, who ran the San Diego based Global Money Management LP, was also ordered to pay $49 million in restitution. Friedman was originally charged with securities fraud after he lied to investors about the fund's assets and used incoming money for his own personal uses or to pay off investors in what amounted to a ponzi scheme.
When Global Money Management had about $11 million in assets, Friedman bragged to investors that the fund had amassed over $100 million in capital. He also neglected to tell investors that he had been barred from doing business with any member of the NASD by the SEC.
At the hearing, U.S. Attorney Karen Hewitt said "Friedman betrayed the trust of these investors and today's sentence ensures the victims of his crime will receive some measure of justice."
From Former hedge fund manager gets 6 year sentence
One Comment so far ...
When is this flagrant financial abuse going to stop? Here’s another recent example targeting seniors who should never be “qualified” to invest in hedge funds. Why does it keep happening?
Comment on April 11, 2008 12:29 amThe SEC charged Thompson Consulting, Inc., Kyle Thompson, David Condie and Sherman Warner with violations of the antifraud provisions of the securities laws by engaging in much riskier trading strategies than those described to investors, several of whom were seniors.