Hedge Fund Mobster Gets Seven Years

Dec 19 2007 | 10:33am ET

A reputed mobster who led a phony hedge fund has been sentenced to seven years in prison for his role in a $20 million pump-and-dump scam.

John Baudanza, who ran American’s Hedge Fund in his hometown of Staten Island, N.Y.—in addition to his reputed role as a foot soldier in the Luchese crime family—was one of 10 alleged mobsters charged in the 11-year-long scam last March. In addition to prison time, he was order to pay $22,500 in restitution to his victims.

According to federal prosecutors, the scheme—a collaborative effort among the Bonanno, Colombo and Luchese crime families—added a classic mob twist, strong-arm tactics and intimidation, to a classic pump-and-dump scheme. The racketeering ring operated from 1994 until 2005, prosecutors said.

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