Wednesday, 30 July 2014
Last updated 6 hours ago
Nov 18 2011 | 2:32am ET
Hedge fund manager Philip Baker was sentenced to 20 years in prison for running a $292 million fraud.
Prosecutors say that Baker's five-year scam cost investors in his Lake Shore Asset Management $154.8 million, more than $30 million of which was stolen by Baker for his own purposes. In addition, he was accused of hiding almost $40 million in losses and lying to investors with phony account statements claiming substantial profits.
Baker pleaded guilty in August to wire fraud, four years after regulators shut down his Chicago-based hedge fund. The 20-year sentence was the maximum Baker faced. U.S. District Judge John Darrah also ordered Baker to pay $154 million in restitution.
"I just want to say I'm sorry to my family and to my former clients," Baker said.
"You caused a lot of people an awful lot of pain," Darrah said. "I urge you to reflect upon what you've done while you're incarcerated so you come out a better person."
Baker's lawyer, Kurt Stitcher, said he would seek to be transferred to a prison in Canada, his native country.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…