Tuesday, March 5, 2013

Hedge Fund Faker Pleads Guilty




From finalternatives: A New Jersey man pleaded guilty Friday to pretending to be a hedge fund manager to steal $3.5 million from investors.

George Sepero became the third man in the scam to plead guilty in the case. He and his co-conspirators allegedly promised triple-digit returns using a proprietary algorithmic trading system that did not exist, sending clients phony account statements and e-mailing them screenshots of their much-ballyhooed computer trading program.

Among Sepero's victims were an ailing elderly paraplegic, who lost her life savings, prosecutors said. Sepero and his co-conspirators allegedly used the stolen money to fund an extravagant lifestyle and to prop up a Ponzi scheme….

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