Fraudster Hochfeld Gets Two Years

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."


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note