Wednesday, 28 September 2016
Last updated 36 min ago
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.