Hedge Fund Fraudster To Football Stars Convicted

May 22 2008 | 2:00am ET

A jury has sacked hedge fund fraudster Kirk Wright, and it could be a long time before he gets back on the field.

Wright, best known for defrauding several National Football League players who invested in his International Management Associates, was convicted of mail fraud, securities fraud and money laundering. At his sentencing on Aug. 26, Wright faces up to 710 years in prison, a $16 million fine and untold millions in restitution.

It took the jury two days to return the verdict, after prosecutors painted a picture of a schemer so debased he defrauded his own mother.

“It was a scam from the beginning,” Jennifer Taylor, the assistant U.S. attorney prosecuting the case, said during closing arguments. “It was a scam to the end.”

According to prosecutors, Marietta, Ga.-based IMA collected more than $155 million. Wright returned $70 million to clients as part of a Ponzi scheme, lost the $31 million he did invest, and used millions more to enrich himself. Much of the money remains missing. Prosecutors said he kept up the scam by sending phony brokerage reports to his clients, but the scheme began to unravel when former football star Steve Atwater and several other NFL players sought to redeem their investments.

Wright’s checks to the players bounced, and he fled in late 2005. He was arrested in Miami Beach, Fla., last May.


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.