Hedge Fund Fraudster Pleads Guilty

Jan 25 2011 | 12:02pm ET

A former New Jersey hedge fund manager has pleaded guilty to defrauding investors of $1.6 million.

Robert Sucarato pleaded guilty to one count of wire fraud in Camden, N.J., federal court Monday. He faces up to 20 years in prison when he is sentenced in May.

Sucarato was arrested in April, accused of lying to investors about, well, just about everything. He allegedly told investors his New York Financial Co. managed $7.2 billion when, in fact, its accounts had just $110,000. He allegedly claimed to have a degree from New York University, when he didn't, and, for good measure, allegedly "embellished biographies" of the firm's other executives. He also allegedly boasted of offices in New York and Chicago which did not exist.

Prosecutors said of the $1.7 million NYFC raised, Sucarato stole almost $500,000, lost another $850,000 and used the rest to prop up his Ponzi scheme.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

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

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...