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

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Publisher's Note