Tuesday, 24 May 2016
Last updated 17 hours ago
May 7 2013 | 11:13am ET
MICG Investment Management CEO Jeffrey Martinovich has been convicted of defrauding his hedge fund's clients.
A Newport News, Va., federal jury found Martinovich guilty of 17 counts of conspiracy, mail fraud, wire fraud and unlawful monetary transactions, while clearing him on three others. He faces centuries in prison at his sentencing in August.
According to prosecutors, Martinovich ran a Ponzi scheme at MICG. He also allegedly routinely misled investors, overvaluing MICG's investments to overcharge them, and lied to them about the financial health of one of its key investments.
Martinovich will remain free on bail until his sentencing.