Ex-Columbus Hill CFO Sentenced For Embezzlement

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.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.