Arrowhead Founder Gets 17 Years In Petters Case

Oct 10 2013 | 8:46am ET

James Fry, the former hedge fund manager convicted of helping Thomas Petters cover up his $3.65 billion Ponzi scheme, has been sentenced to 17 years in prison.

While Fry was not accused of knowing about Petters' fraud, he was found guilty of lying to investors in his Arrowhead Capital Management and the Securities and Exchange Commission about his Petters investments and the criminal history of Petters' chief fundraiser, Frank Vennes. According to prosecutors, Fry helped cover up Petters' default on notes owned by Arrowhead.

The crimes required "a substantial sentence," U.S. District Judge Richard Kyle said, and he imposed one—although he declined to send Fry away for the 25 years sought by prosecutors. Fyr's own lawyers had sought a six-year sentence.

Arrowhead clients lost $120 million in Petters' scam. Petters is serving a 50-year sentence.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...