Thursday, 26 May 2016
Last updated 18 hours ago
Jul 23 2010 | 11:38am ET
A Utah pension fund employee who surreptitiously tried to serve as a hedge fund’s placement agent has been sentenced to one year in prison.
Cameron Cox pleaded guilty to charges that he sought $150,000 from a London-based hedge fund seeking a $50 million mandate. The 28-year-old, who was part of the team doing due diligence at the Utah Retirement System on the unidentified hedge fund sought to negotiate a “side deal” with the hedge fund’s point person, promising to deliver the mandate in exchange for the payout, according to prosecutors.
There were only two problems: Cox was in no position to deliver the mandate, and the hedge fund—after three months of negotiating with Cox, who had allegedly hidden the communications from his superiors—mentioned the proposed deal to URS.
URS then told the police. The hedge fund cooperated in the ensuing Federal Bureau of Investigation sting.
Cox pleaded guilty to scheme to defraud last month. He was also sentenced to three years of supervised release after his prison term is up.