Saturday, 31 January 2015
Last updated 1 day ago
Mar 4 2013 | 12:41pm ET
A New Jersey man pleaded guilty Friday to pretending to be a hedge fund manager to steal $3.5 million from investors.
George Sepero became the third man in the scam to plead guilty in the case. He and his co-conspirators allegedly promised triple-digit returns using a proprietary algorithmic trading system that did not exist, sending clients phony account statements and e-mailing them screenshots of their much-ballyhooed computer trading program.
Among Sepero's victims were an ailing elderly paraplegic, who lost her life savings, prosecutors said. Sepero and his co-conspirators allegedly used the stolen money to fund an extravagant lifestyle and to prop up a Ponzi scheme.
Sepero faces up to 20 years in prison for fraud, conspiracy and tax evasion when he is sentenced in June.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…