N.Y. Hedge Fund Manager Pleads Guilty

Jul 29 2013 | 9:41am ET

An upstate New York hedge fund manager has pleaded guilty to ripping investors off to the tune of $12.6 million.

Lloyd Barriger admitted that he misled new investors in his Gaffken & Barriger hedge fund after it had collapsed, the victim of a series of failed real-estate loans. Rather than admit his failures, Barriger continued to sell the fund as safe and liquid and promised 8% annual returns, even as it defaulted on a $20 million credit line and delinquencies in its portfolio increased.

"Once again, belief in hedge funds by hopeful investors proved to be sadly misplaced," Preet Bharara, the U.S. Attorney in Manhattan, said. "In this case, the perpetrator was not in a sleek Manhattan building but rather in Sullivan County."

Barriger's firm was based in the town of Monticello, about 90 miles northwest of New York City.

Barriger, who lives in Damascus, Pa., was indicted on securities fraud, mail fraud and conspiracy charges in February. He pleaded guilty in White Plains, N.Y., federal court on Friday, and faces up to 65 years in prison when he is sentenced Nov. 15. Prosecutors also plan to seek $12.6 million in forfeitures.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note