Tuesday, 28 February 2017
Last updated 3 hours ago
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.