Jailed Hedge Fund Manager Strikes Deal With SEC

Sep 15 2008 | 8:49am ET

A hedge fund manager serving a 12-year prison sentence for defrauding an Ohio agency he managed a hedge fund for has settled civil charges filed by the Securities and Exchange Commission.

Mark Lay, convicted last year of losing $216 million for the Ohio Bureau of Workers’ Compensation in a highly-levered hedge fund he invested in without authorization, has been barred from serving as an investment adviser. But Lay, who did not admit or deny the charges, will not be on the hook for more than the $213.5 million in restitution and forfeiture ordered by the jury in his criminal trial, as the SEC has waived the $1.5 million he and MDL earned managing Ohio’s money, “based on the defendants’ sworn statements of financial condition.

Lay’s firm, Pittsburgh-based MDL Capital Management, had its registration with the SEC revoked as part of the settlement, which was filed in federal court on Friday.

The settlement agreement still requires the approval of the court.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note