Accused Georgia Hedge Fund Fraudsters Plead Not Guilty

May 19 2009 | 2:04am ET

Two Georgians accused of ripping investors off to the tune of $2 million in a hedge fund scam have pleaded not guilty to federal fraud charges.

Gary Hutcheson and Saundra McKinney Pyles have been charged with five counts each of mail fraud and money laundering. Prosecutors say the two defrauded more than four dozen investors, among them members of Macon’s elite, in Hutcheson’s Georgia Ionics Fund of $2.11 million.

According to the complaint, Hutcheson stole some two-thirds of the money collected for Georgia Ionics, beginning in May 2006. He allegedly lost most of the $780,000 he actually did invest.

Hutcheson and Pyles were arrested last month in Colorado, a week after they were charged. Both have been ordered held without bail until a detention hearing tomorrow. If convicted, Hutcheson and Pyles face more than five years in prison.


In Depth

Q&A: MackeyRMS's Chris Mackey On A High Tech Fix To Broker Votes

Jun 23 2017 | 8:17pm ET

The looming implementation of the EU’s MiFID II rules regarding research has put...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of