Hedge Fund Fraudster Gets More Than Five Years For Ponzi Scheme

Jun 19 2012 | 2:03pm ET

Admitted hedge fund fraudster Krittibas Ray is going to prison for more than five years.

A federal judge in San Francisco sentenced the Albany, Calif., man to 65 months in prison, as well as ordering him to pay $2.9 million in restitution. Ray pleaded guilty to wire fraud in March.

According to prosecutors, Ray ran a Ponzi scheme that cost investors more than $2.5 million of the $3.3 million he collected from them between February 2008 and the end of last year, when he was arrested. He admitted promising clients returns of between 7% and 8.5% by investing in Indian banks, but actually invested in himself and earlier investors, while lying to clients about his returns.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Is Steven Cohen Going to Buy the Brooklyn Nets?

Jan 19 2015 | 6:49am ET

Rumors that Steve Cohen was interested in the Brooklyn Nets emerged after Scott...

Guest Contributor

Investors Benefit From Evolution Of Fund Of Hedge Funds Model

Jan 22 2015 | 12:27pm ET

The evolution of the fund of hedge funds model over the last few years represents...

 

Editor's Note