Lawyer With Washington Ties Charged With Bilking Hedge Fund

Aug 3 2011 | 10:27am ET

A Philadelphia lawyer and aide to a Florida congressman has pleaded not guilty to charges that he ripped off a hedge fund.

Mikel Jones' trial on fraud and money laundering charges is set to begin in September in Philadelphia. The longtime aide to Rep. Alcee Hastings (D-Fla.) and longtime friend of Rep. Chaka Fattah (D-Pa.), Jones is accused of using "fraudulent invoices and false representations" to win loans from the New York hedge fund, which is not identified.

Jones accepted more than $300,000 in loans from the hedge fund, according to the indictment against him. He is also accused of borrowing $150,000 from a program run by the city of Philadelphia to support minority-owned businesses while repaying only $20,000.

"Did I use some of the [Philadelphia Commercial Development Corp.] money for personal use? Yes," Jones admitted to the Federal Bureau of Investigation, according to court filings. "If I don't survive, the law firm doesn't survive, and the loan was to help the law firm survive."

But prosecutors allege that some of the money paid for football tickets, his wife's American Express bill and a lavish birthday party for his wife.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note