Tuesday, 21 April 2015
Last updated 10 hours ago
Sep 24 2013 | 9:43am ET
A U.S. hedge fund manager who pleaded guilty in the K1 Group fraud has been sent to prison for his role in defrauding investors of more than $300 million.
John Tausche was sentenced to four-and-a-half years in prison and ordered to pay $115 million in restitution to Barclays, one of the largest victims of K1 founder Helmut Kiener's scam.
Tausche ran the Wichita, Kan.-based Oceanus Funds. Prosecutors say that Kiener used those vehicles for a series of roundtrip payments that made it appear that K1 was growing, when in fact Oceanus was simply returning money that K1 had sent it. Tausche also gave both Barclays and Bear Stearns false financial information, leading the to banks to offer K1 more than $200 million in financing.
Tausche's cut from the fraud was about $114 million, prosecutors said. He cooperated in the investigation.
Kiener was convicted in 2011 and sentenced to nearly 11 years in prison in Germany.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…