Stein Gets Nine Years For HF Fraud

02-12-2010 | Source: emii.com

New York hedge fund manager, Edward Stein, will serve a nine-year prison term for duping investors of $46 million in a Ponzi scheme, Bloomberg reports. Stein, who pleaded guilty in June to five counts of securities and wire fraud, had faced almost 20 years in prison.

A U.S. District Judge in Brooklyn reduced Stein’s sentence, saying his crimes fell outside the “heartland” of fraud cases and said he did not believe Stein would commit the crime again because of his age. Stein ran two hedge funds and a life-settlement policy investment firm from his offices in Roslyn, New York, including DISP LLC, Gemini Fund I and Prima Capital Management Corp.

In addition, the SEC has filed a civil complaint accusing him shifting millions from at least 83 investors through the accounts he managed.

Click here for the story from Bloomberg.

Click here for the FBI announcement