Ponzi Schemer Accepts Bill He Can't Pay

Sep 10 2013 | 10:09am ET

Hedge fund fraudster Yusaf Jawed still doesn't know with certainty how much time he'll spend in jail for ripping off investors of $37 million. But he knows what his bill for the crime will be.

Jawed has settled with the Securities and Exchange Commission for almost $34 million. There's little chance that clients of his failed Grifphon Asset Management will ever see it, or the $6.4 million he was ordered to pay in the criminal case against him, since Jawed is broke.

Jawed reached the deal with the SEC in June. He is still awaiting sentencing on the 17 counts of mail and wire fraud he pleaded guilty to in April; Jawed was to be sentenced yesterday, but the hearing was pushed back to Sept. 23.

Under the terms of the plea deal, Jawed will be sentenced to six-and-a-half years in prison, although the sentencing judge can change that term. When he gets out, his wages will likely be garnished.

According to prosecutors, Jawed ran a Ponzi scheme at his Oregon hedge fund for a decade. The SEC alleges he defrauded more than 100 investors of $37 million, making both Ponzi-type payments to earlier investors and using investor money to pay personal expenses.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

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.