Fraudster Avoids Prison Redux

Sep 25 2012 | 11:52am ET

Convicted hedge fund fraudster David Mobley avoided a return to prison yesterday.

The Florida felon's probation officer filed a parole revocation petition after Mobley went a year after his release without making a single payment towards the $77 million in restitution he was ordered to pay. But after the probation officer told him about her plans, he quickly got a job as a laborer, making $8 per hour, and has paid $400 to his victims.

A federal judge in Fort Myers, Fla., dismissed the petition in light of Mobley's payments, but ordered him to pay a quarter of his monthly gross income toward the restitution and warned him that he may be forced to serve out the rest of his 17-and-a-half-year sentence if he slips up again.

Mobley was convicted in 2001 of ripping off investors in his Maricopa International Investment of $140 million. According to prosecutors, he lied to clients about how much he was managing and how well that money was doing, spending lavishly on homes, cars, jewelry and failed business ventures.

He was released from prison in August 2011.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of