Benjamin Koifman, who pleaded guilty to conspiracy for his role in a scheme to cheat investors with a phony New York-based hedge fund, was sentenced to five years and three months in prison.
Koifman and William Shternfeld ran A.R. Capital Global Fund LP, an unregistered investment adviser, and ARC Global Fund, a hedge fund that said it invested in equity of international real estate, according to prosecutors in the office of Manhattan U.S. Attorney Preet Bharara.
Koifman was sentenced by U.S. District Judge Sidney Stein in Manhattan today. At a separate hearing, Stein said he intends to impose the same sentence on Shternfeld in October after the defendant undergoes a medical evaluation.
Prosecutors claimed that, from 2004 to 2006, Shternfeld and Koifman engaged in a scheme with co-conspirators to get at least 70 investors to invest about $20 million in the ARC Global Fund by making false statements about it.
At the hearing today, Koifman, 36, cried three times during his remarks to the judge while pleading for a light sentence. “I did terrible things,” Koifman told Stein. “This mistake has caused people including my family to suffer..."
Read more at http://www.bloomberg.com/news/2011-08-12/fake-hedge-fund-operator-receives-63-month-sentence-for-20-million-scheme.html
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