Accused Hedge Fund Fraudster Ordered To Pay $9.5M

Sep 23 2009 | 2:46am ET

A former Maryland hedge fund manager has been ordered to pay $9.5 million in an alleged fraud case.

The Maryland attorney general’s office announced the ruling against John Henry Williams in Prince George’s County Circuit Court. According to attorney general’s office’s securities division, Williams defrauded more than 150 investors in his LaJon Capital Management and several related entities of some $9 million. Most of the money invested with Williams was lost, according to prosecutors, but Williams hid those losses from investors.

The ruling against Williams comes more than two-and-a-half years after the securities division entered a consent order that found he had committed securities fraud. Williams, who allegedly used free lunch seminars to lure in potential victims, has since filed for bankruptcy.

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