Hedge Fund Fraudsters Get Seven Years For $7 Million Scam

Mar 28 2011 | 1:22am ET

Two admitted hedge fund fraudsters have been sentenced to a year in prison for each million they cost investors.

Igor Levin and Yevgeny Shvatsshteyn were each ordered to serve 87 months in prison, slightly more than seven years, for defrauding investors of more than $7 million. U.S. District Judge Sidney Stein also ordered the two to pay that amount in restitution.

Levin and Shvatsshteyn pleaded guilty in December. The two said they never invested the money entrusted to them in international real estate, as promised, instead sending it to banks in Levin's native Ukraine. The millions appear to have disappeared.

Levin faces deportation to the Ukraine after completing his sentence.

It's not the first trip up the river for either man: Shvatsshteyn served more than two years in prison a decade ago for mail fraud, while Levin did 11 months for a firearms violation in the early 1990s.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...