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

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note