Saturday, 20 December 2014
Last updated 1 day 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.