Hedge Fund Fraudster Martinovich Guilty

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.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note