Indicted Hedgie Pleads Guilty To Fraud

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.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...