Hedge Fund Manager Pleads Guilty To Stealing From Clients

Jan 11 2013 | 12:06pm ET

Former hedge fund manager Berton Hochfeld has pleaded guilty to defrauding investors of more than $1 million.

The 66-year-old entered his plea on securities and wire fraud charges in Manhattan federal court yesterday. He agreed to forfeit the roughly $1.3 million he stole and to pay restitution.

Hochfeld was arrested in November. According to prosecutors and the Securities and Exchange Commission, he stole about a quarter of the $6 million he raised for Hochfeld Capital Management's Heppelwhite Fund, using some of it to buy a collection of antiques and vacations. He hid his fraud with phony account statements.

Hochfeld also allegedly failed to tell his investors that he'd been banned from the industry in 2006 by the SEC.

Hochfeld will be sentenced on June 27.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note