Saturday, 23 August 2014
Last updated 22 hours ago
Apr 30 2010 | 12:02pm ET
The head of Long Island investment firm Melhado Flynn & Associates was sentenced to 8 years in prison for illegally cherry-picking profitable trades for two hedge funds he controlled.
George Motz, who pleaded guilty in October to favoring his firm’s proprietary accounts and the hedge fund accounts he controlled over those of MFA’s clients, had faced up to 25 years in prison. His scheme wound up costing his firm’s clients $1.4 million while enriching the proprietary and hedge fund accounts, one of which was called Third Millennium, by $2.2 million.
Of the 204 trades Motz assigned—often just before the market closed, after it became clear how successful the move was—to MFA’s proprietary account, 202 proved profitable.
Motz was ordered to surrender to authorities on June 30 to begin his sentence. He was also fined $20,000.
The 67-year-old, in addition to running a fraud, also formerly served as mayor of Quogue, N.Y., a village of about 1,000 in Long Island’s tony Hamptons area.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note