Saturday, 2 August 2014
Last updated 14 hours ago
Aug 15 2011 | 2:24pm ET
Hedge fund fraudster Benjamin Koifman was sentenced to more than five years in prison on Friday.
Koifman is one of four men to plead guilty in the A.R. Capital case. That fraud cost investors some $20 million. Most of the money cannot be recovered, prosecutors said.
U.S. District Judge Sidney Stein sentenced Koifman to five years and three months in prison. At a separate hearing on Friday, he said he intends to sentence one of Koifman's co-conspirators, William Shternfeld, to the same jail term, but agreed to delay his sentencing until October.
Shternfeld, who suffers from oral cancer and wears a mouth prosthesis, has argued that the federal Bureau of Prisons is not equipped to care for him.
"I'm ready to be sentenced," Shternfeld told Stein. "But do I have to go through torture every day?"
For his part, teary Koifman told Stein that he had done "terrible things." But Stein was unmoved.
"He kept calling elderly people. They took the money and ran," Stein said. "That's pretty pernicious."