Tuesday, 26 July 2016
Last updated 3 hours ago
Aug 6 2013 | 10:13am ET
Admitted hedge fund fraudster Berton Hochfeld has been sentenced to two years in prison for ripping investors off to the tune of $2 million.
The 66-year-old pleaded guilty in January to securities and wire fraud, two months after his arrest. According to prosecutors and the Securities and Exchange Commission, he stole about a quarter of the $6 million he raised for Hochfeld Capital Management's Heppelwhite Fund, using some of it to buy a collection of antiques and vacations. He hid his fraud with phony account statements.
Hochfeld also allegedly failed to tell his investors that he'd been banned from the industry in 2006 by the SEC.
In addition to the prison term, Hochfeld was ordered to serve three years of supervised release and to forfeit $2.1 million.
Hochfeld's lawyer, Roland Riopelle, said the levy was a "fair sentence" and that he "is very anxious to put this whole matter behind him."