New York (HedgeCo.net) – The manager of the now defunct Chicago hedge fund, Lake Shore Asset Management, has pleaded guilty to a fraud scheme, Reuters reported today.
“Baker from 2002 to September 2007 obtained the $291.9 million from about 900 investors he fraudulently solicited to invest in commodity pools, for the purpose of trading futures.” The plea agreement states.
By admitting to one count of wire fraud, the hedge fund manager averted a trial scheduled to begin on September 19, Reuters said. Baker was arrested in Hamburg in July 2009.
Sentencing is scheduled for November 17, 2011, prosecutors will recommend the maximum 20 years in prison. The hedge fund manager will also be made to pay $154.8 million in restitution.
Alex Akesson
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