Wright Showed No Signs Of Trouble; NFL Lawsuit Will Continue

May 27 2008 | 10:57am ET

Convicted hedge fund fraudster Kirk Wright gave no indication that he was planning to end his life, officials said yesterday.

Wright met with his mother and lawyer on Wednesday, after being convicted of 47 counts of fraud and money laundering. John Mansch, chief of the Union City, Ga., jail where Wright hung himself on Saturday morning, said Wright’s attorney did not say his client was having problems, and Mansch said he did not pick up on anything when he spoke Wright.

“He’s a very intelligent young man, very well-spoken,” Mansch told the Atlanta Journal Constitution. “He didn’t give me any indication that he was under any particular duress. He just said, ‘I’m all right.’”

Wright, who faced more than 700 years in prison at his Aug. 26 sentencing, had been housed at the Atlanta-area jail since October. He was on “security alert,” typical for recently convicted inmates, and other special alerts due to altercations he had been involved in at other jail facilities, but not on suicide watch.

Wright, who had no cellmate, was found by a fellow inmate unconscious on Saturday morning just before 10 a.m.—prisoners are permitted to move freely in the units from 6 a.m. until 10 a.m. The 37-year-old had hanged himself with bed sheets sometime between 9 a.m. and 9:45 a.m., jail officials say. The U.S. Marshals Service and Georgia Bureau of Investigation are investigating the suicide, the second suicide at the Union City facility in the past nine years.

Separately, a lawyer representing some of Wright’s victims, a group of six former National Football League players, say the International Management Associates chief’s death will not affect their lawsuit against the NFL and its players union.

Marlon Kimpson said the suit, which accuses the union of endorsing IMA in spite of liens against Wright, will move forward, and that the union hadn’t planned to call Wright as a witness.

“The point of the lawsuit is to make sure what happened does not happen again,” he said.

The players allege they lost $20 million in IMA. The union, the National Football League Players Association, has countersued, saying the former players broke union rules by failing to exhaust internal remedies before suing. The union says it does not endorse any of its registered financial advisers.

According to prosecutors, IMA collected more than $155 million. Wright allegedly 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.

RELATED STORIES

Convicted Hedge Fund Manager Commits Suicide
Hedge Fund Fraudster To Football Stars Convicted
Hedge Fund Manager For NFL Stars Fined $20 Million


In Depth

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

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

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.