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

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of