Tuesday, 7 July 2015
Last updated 18 hours ago
Oct 25 2011 | 6:52am ET
Federal prosecutors won a seventh guilty plea in a $40 million hedge fund fraud case yesterday.
Brian Coats pleaded guilty to conspiracy, securities fraud, wire fraud and promotional money-laundering conspiracy. According to prosecutors, Coats and seven others ran a fraudulent hedge fund and Ponzi scheme from 2007 through the end of 2009. Many of the group's victims were elderly.
Coats, his three companies and his co-conspirators told investors they managed a hedge fund called Black Diamond. The eight transformed the scam into a Ponzi scheme when it began to collapse in 2009.
Coats faces up to 15 years in prison and a $500,000 fine.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…