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

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

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.