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.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...