Sunday, 28 August 2016
Last updated 1 day 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.