A.R. Capital Fraudster Gets More Than Five Years

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."


In Depth

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note