Wednesday, 28 September 2016
Last updated 21 min ago
Oct 21 2013 | 11:15am ET
Hedge fund fraudster George Sepero will spend more than eight years in prison for stealing some $3.5 million from his victims.
Sepero was sentenced to 100 months in jail, nearly eight months after pleading guilty to fraud, conspiracy and tax evasion. He had faced up to 20 years in prison. U.S. District Judge Jerome Simandle also ordered Sepero to pay $4.98 million in restitution.
Sepero and two other men, Carmelo Provenzano and Daniel Dragan, allegedly promised triple-digit returns using a proprietary algorithmic trading system that did not exist, sending clients phony account statements and e-mailing them screenshots of their much-ballyhooed computer trading program. The scam began in 2009.
Among the three men's victims were an ailing elderly paraplegic, who lost her life's savings, prosecutors said. Sepero and his co-conspirators allegedly used the stolen money to fund an extravagant lifestyle and to prop up a Ponzi scheme.
Both Provenzano and Dragan also pleaded guilty in the case.
"George Sepero stole millions in a Ponzi scheme and perpetrated a monstrous fraud on an elderly woman who was the definition of vulnerable," New Jersey U.S. Attorney Paul Fishman said. "Blowing fortunes of other people's money, he continued to commit scam after scam until he was locked up. It is fair that he spend his next years away from the society he victimized."