So. Cal. Man Pleads Guilty To Hedge Fund Ponzi Scheme

Sep 27 2011 | 12:42pm ET

A California hedge fund fraudster faces up to 20 years in prison after pleading guilty to running a $5 million Ponzi scheme.

John Clement entered his plea on wire fraud charges last week. According to prosecutors, he promised, á la Bernard Madoff, steady if unspectacular monthly returns of between 1.5% and 2% with minimal risk. But he actually used the money invested in his Edgefund Capital to repay earlier investors.

Some 22 people were caught up in the Encinitas man's fraud.

Clement, 65, will be sentenced on Dec. 20. He also faces a fine of up to $250,000.

A federal judge froze Clement's assets in May as his Ponzi scheme began to collapse.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...