Monday, 24 October 2016
Last updated 2 days ago
Mar 31 2010 | 2:32am ET
Hedge fund fraudster Michael McCready was sentenced to nine years in prison for defrauding investors of some $9 million.
The Beverly Hills, Calif., hedge fund manager pleaded guilty in October to running a Ponzi scheme for five years. He had faced up to 20 years in prison on the federal securities fraud charges.
McCready was also ordered to pay restitution to his victims, many of whom were involved in the entertainment industry.
According to prosecutors, McCready pretended to manage both a hedge fund and more traditional investments. But they say he never actually invested a dime, instead using new money to pay off old investors and spending the rest on himself and his girlfriend. Among the ventures unknowingly financed by McCready’s clients were his girlfriend’s business, a movie written and directed by the fraudster himself, and a trip to the Super Bowl. All the while, investors were kept in the dark with bogus account statements.