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

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...