Beverley Hills Hedge Fund Fraudster Gets Nine Years

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.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

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

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of