Pennsylvania Ponzi Schemer Cops A Plea

Mar 17 2010 | 1:24pm ET

A Pennsylvania man admitted yesterday that his hedge fund was actually a $12 million Ponzi scheme.

Stephen Alexander pleaded guilty to wire fraud and money laundering. The Villanova man faces up to eight years in prison under a plea agreement when he is sentenced in June.

According to prosecutors, Alexander spent investor money on himself. Clients of his Hartford Investment were treated to phony financial statements touting impressive returns of between 17% and 38%, when, in fact, the investments he made actually lost money.

Alexander allegedly solicited the money from 15 friends and family members. He still owes investors about $7.5 million, He is now free on $50,000 bond.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...