Boston Provident Exec. Pleads Guilty To Fraud

Mar 12 2010 | 8:08am ET

The former CFO of New York hedge fund Boston Provident Partners has pleaded guilty to bilking the firm out of $3 million.

Ezra Levy, who was the firm’s chief trader, admitted to trading for his own benefit at Boston Provident’s expense. Originally charged with stealing and swindling $1.3 million from the firm, Levy acknowledged getting more than twice as much.

In one case, Levy netted $600,000 selling shares he owned to Boston Provident at an inflated price.

“I used those funds to pay my personal expenses,” Levy told U.S. District Judge Kevin Castel. He pleaded guilty to one count each of securities and wire fraud.

Levy faces up to six-and-a-half years in prison at his sentencing on June 18. He remains free on $1 million bond. Levy has also been sued by the Securities and Exchange Commission.

Boston Provident is headed by Orin Kramer, a well-known Democratic Party fundraiser and chairman of the New Jersey State Investment Council. The hedge fund said Kramer would personally reimburse the losses and pay the legal fees stemming from the case.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...