Grifphon Hedge Fund Fraudster Gets Six-And-A-Half Years

Sep 24 2013 | 9:44am ET

Oregon hedge fund manager Yusaf Jawed has been sentenced to six years in prison for defrauding investors of $37 million.

The sentence follows a plea deal he struck in April, pleading guilty to 17 counts of mail and wire fraud. Jawed was earlier ordered to pay $6.4 million in forfeitures, and earlier this month reached a $34 million settlement with the Securities and Exchange Commission.

According to prosecutors, Jawed ran a Ponzi scheme at his Grifphon Asset Management for a decade. The SEC alleges that the former defrauded more than 100 investors of $37 million, making both Ponzi-type payments to earlier investors and using investor money to pay personal expenses.

"It is my fault," Jawed told U.S. District Judge Ancer Haggerty yesterday. "I promise to atone for it for the rest of my life."

Jawed is cooperating with prosecutors, a move that earned him a two-year reduction of his sentence. He does not have the resources to pay any of the more than $40 million he's agreed to.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR