Saturday, 6 February 2016
Last updated 1 day ago
Jun 8 2012 | 12:22pm ET
Columbus Hill Capital Management's former finance chief has been sentenced to more than four years in prison for embezzling more than $10 million from the hedge fund.
David Newmark pleaded guilty in January to wire fraud and tax evasion, admitting that he stole $10.4 million from Columbus Hill to fuel his gambling addiction, primarily sports betting. In addition, he failed to report some $2.8 million in income he earned betting.
Newmark, who has six-year-old triplets, told U.S. District Judge William Walls that his crimes keep "me awake every night." But the judge rejected a bid for leniency from Newmark's lawyer.
"I understand the tenacity of a gambling hole," the judge said. "You have no idea how well I understand."
But, the judge continued, "you have to be punished so that you feel the sting of what you so willfully did," before handing down a 54-month sentence.
In addition, Newmark was ordered to pay restitution and to serve three years' parole. He has also been barred from any gambling, including the purchase of lottery tickets.
Newmark ripped his employer off for more than three years, prosecutors said, cutting checks and making wire transfers from Columbus Hill's custodial accounts to an account he set up with a name similar to the hedge fund's.