Calif. Fraudster Sentenced For $100M Ponzi Scheme

Apr 9 2008 | 7:13am ET

A former San Diego hedge fund manager has been sentenced to 6 years in prison for defrauding investors of more than $100 million in a Ponzi scheme.

Marvin Friedman pleaded guilty to fraud charges more than two years ago. He allegedly lied to investors in his Global Money Management fund, telling them the fund had nine times as much in assets as it actually did, all the while misappropriating investor funds for personal use and to pay off other investors. According to prosecutors, he ran the scheme after being barred from the securities industry by the NASD.

“Friedman betrayed the trust of these investors and today’s sentence ensures the victims of his crime will receive some measure of justice,” Karen Hewitt, interim U.S. Attorney for the Southern District of California, said.

In addition to the jail time, Friedman was ordered to pay $49 million in restitution.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Publisher's Note