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

Hedge Fund Selection: Sussex Partners’ Patrick Ghali Bullish On The Best Of The Best

Oct 2 2014 | 5:56am ET

Ten years ago, Patrick Ghali and Robin Nydes co-founded Sussex Partners with the...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.