According to cincinnati.com the fraudster, Justin Paperny, 36, grew up in an affluent suburb of Los Angeles, was a student athlete at the University of Southern California and landed a high-flying, big-money career as a Wall Street investment broker. Despite earning hundreds of thousands legitimately, he became a key figure in a hedge fund that defrauded 42 investors out of $14 million, a crime that landed him in federal prison for a year.
Paperny's fraud was a Ponzi scheme, the most common type of financial trickery. That's what Bernie Madoff's multibillion-dollar fraud was…., At age 25, he earned more than $200,000 in his first year at Wall Street giant Bear Stearns. But Paperny felt he deserved more. He began siphoning commissions from a joint account with his senior partner into his personal account. That was the beginning of the slide into big-time fraud.
Under pressure to put up big numbers, he brought in a client, a hedge fund worth $600 million in business. But there was a catch. The guy who ran the fund was "perhaps the worst stock picker in the history of money management," who, only through his "loose code of ethics," was able to generate returns, Paperny says.
"I knew that I was making a deal with a devil," he says…
Whatevs...
Find out more at http://news.cincinnati.com/article/20110710/BIZ/107100348
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