Boiler-Room Scam ‘Mastermind’ Gets Eight Years

Sep 21 2011 | 2:30am ET

The Staten Island, N.Y., hedge fund manager who admitted to lying to his clients about just about everything was sentenced to eight years in prison yesterday.

Kenneth Marsh was the last of the 18 people who pleaded guilty in the Gryphon Holdings boiler-room fraud to learn his sentence. The one he received was more than the five years U.S. District Judge Jack Weinstein initially indicated he’d impose, but less than the 10 years the judge suggested last week after hearing from the victims of the $20 million scam.

“The victims were heard and they told heart-wrenching stories,” Weinstein said.

According to prosecutors, Gryphon lied about its assets under management, invented a relationship with George Soros and made up offices in Manhattan, London and Sydney, Australia, when it was actually run out of a Staten Island strip mall. Marsh also allegedly made up two traders.

What’s more, Weinstein said, he “made criminals out of otherwise law-abiding people.”

Marsh’s lawyer, Alan Futerfas, called the sentence “fair and just,” but would not rule out an appeal.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.