Saturday, 22 October 2016
Last updated 21 hours ago
Feb 8 2012 | 12:58pm ET
A fake Atlanta hedge fund manager was sentenced to more than eight years in prison for ripping off investors to the tune of $8.8 million.
Charles Vaughn ran a $10 million Ponzi scheme, raising some $10 million from at least 25 investors for his CM Vaughn "hedge fund." Vaughn promised monthly returns of 2% to 3.5% in the scam, which ran from July 2004 through March 2008. In addition to the Ponzi-style payments, Vaughn skimmed investor capital for to pay his own personal expenses.
Vaughn also sent out phony account statements and promised that investors' capital would be insured as to prevent them from falling below a given backstop.
Vaughn, who pleaded guilty to fraud in October, was sentenced to eight years and four months in prison and three years' supervised release. He was also ordered to pay $8.8 million in restitution.