Arrowhead's Fry Convicted In Petters Case

Jun 13 2013 | 10:06am ET

Hedge fund manager James Fry was found guilty yesterday of misleading investors about his firm's ties to Ponzi schemer Thomas Petters.

The St. Paul, Minn., federal jury convicted the Arrowhead Capital Management founder of all 12 fraud and making false statements to the Securities and Exchange Commission charges on their third day of deliberations, agreeing with prosecutors that Fry had lied to his clients. The hedge fund manager, who was not accused of having knowledge of Petters' $3.65 billion fraud, nonetheless sought to help Petters cover up his default on notes owned by Arrowhead, and also lied to clients about the criminal history of Petters' chief fundraiser, Frank Vennes.

Fry is only the second person convicted by a jury in the case, after Petters himself, who is serving a 50-year prison sentence. All of the other defendants in the case, including Vennes, who was originally set to be Fry's co-defendant, pleaded guilty.

Fry faces up to 135 years in prison. U.S. District Judge Richard Kyle allowed him to remain free pending sentencing, rejecting prosecutors' arguments that he is a flight risk.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.