Melhado Flynn Chief Sentenced To Eight Years For Fraud

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.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...