Thursday, 27 November 2014
Last updated 1 day ago
Jan 16 2014 | 12:45pm ET
Hedge fund fraudster Aleksander Efrosman is going back to jail.
A federal judge in Brooklyn, N.Y., sentenced Efrosman to more than 15 years in prison yesterday. Efrosman pleaded guilty to defrauding clients in his AJR Capital and Century Maxim Funds of $5 million—but not before going on the run for five years.
Efrosman, who spent three years in prison in the early 2000s over another foreign-exchange scam, fled the U.S. on a phony Russian passport in 2005, a year before his was indicted for the AJR-Century fraud. He lived in Mexico, Panama—where he ran yet another investment scheme—and Poland before he was tracked down and arrested there in 2010. He pleaded guilty in 2012.
Efrosman, who had to be extradited from France before his first conviction, was also ordered to pay $4 million in restitution.
"Efrosman has finally been held to account for his betrayal of his clients' trust," U.S. Attorney Loretta Lynch said.
Efrosman spent the money he stole on himself, losing some $3 million of it gambling at the Foxwoods Resort Casino in Connecticut.
Nov 4 2014 | 9:45am ET
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