Georgia Hedge Fund Fraudsters Sentenced

Nov 16 2009 | 6:36pm ET

A Georgia hedge fund fraudster will spend five years in prison for ripping off investors to the tune of more than $2 million.

Gary Hutcheson had faced up to 40 years in prison even after cutting a plea deal with prosecutors. His accomplice, Saundra McKinney Pyles, was sentenced to seven months in prison and seven months home confinement as part of the agreement. The two have been ordered to pay more than $1.6 million in restitution.

In August, Hutcheson pleaded guilty to mail fraud and money-laundering, and Pyles to helping him cover up his crimes. 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.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

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

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of