Saturday, 25 June 2016
Last updated 1 day ago
May 5 2009 | 12:25pm ET
Disgraced hedge fund manager Eric Hauser of defunct Lancer Group has pleaded guilty to participating in a scheme to manipulate stocks owned by its hedge funds.
According to a press release from the Department of Justice, the 65-year-olf Hauser pleaded guilty last week to one count of conspiracy to commit mail, wire and securities fraud before U.S. District Judge Adalberto Jordan in Miami. His sentencing is scheduled July 10.
Lauer and four others, Michael Lauer, Martin Garvey, Laurence Isaacson and Milton Barbarosh, were charged last year with conspiracy and wire fraud for allegedly using shell companies to inflate the value of their Lancer Group hedge funds. Lancer bought large quantities of restricted shares in shell companies, including those run by Babarosh. The hedge fund would then buy more shares on the open market, artificially driving up the price.The scheme allegedly cost investors, including a Connecticut state pension fund, more than $200 million from 1999 through 2003.
Lauer and his co-defendants faced as much as 25 years in the clink if convicted. A trial date hasn't been set for the remaining defendants.