Tuesday, 31 May 2016
Last updated 3 days ago
Dec 20 2013 | 10:53am ET
A suburban New York hedge fund manager has pleaded guilty to defrauding clients of $2.7 million.
Stephen Colangelo entered his plea to two counts of securities fraud and two counts of wire fraud yesterday. Colangelo, who has been jailed since his arrest last November, faces up to 80 years in prison.
According to prosecutors, Colangelo stole more than $1.6 million in investor funds from his Brickell Fund, and another $1.1 million from his other business ventures, which included three websites purporting to help people launch hedge funds and raise money for them. His fraud allegedly included sending bogus performance statements and private-placement memoranda to clients, as well as using the logos of well-known media companies on his websites to make them appear legitimate.