Hedge Fund Accountant Gets One Year In Ponzi Case

Oct 4 2010 | 2:30am ET

A former hedge fund executive has been sentenced to one year and one day in prison for his role in the Thomas Petters Ponzi scheme.

Harold Katz pleaded guilty last year to conspiracy to commit wire fraud. The vice president of finance at hedge fund Lancelot Investment Management was accused of crafting the bogus documents used by Petters and Lancelot founder Gregory Bell to fool investors into believing that Petters was making good on his loan payments. He also allegedly designed the "round-trip" wire transfer payments to create the impression that Petters was, in fact, paying.

Bell was sentenced to six years in prison last week. Petters, who was convicted of running a $3.65 billion fraud, was sentenced to 50 years in prison following his conviction last year.

Katz had faced up to five years in prison.

"I made a colossal error in judgment," Katz said at his sentencing Friday. "I hope I can use this horrific experience to help others not make the same mistakes as I have."


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of