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

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

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.