New York (HedgeCo.net) – Former hedge fund manager Greg Bell was sentenced yesterday to to six years in federal prison, five after time seved.

Through his Chicago hedge fund, Lancelot Investment Management, Bell is accused of helping prop up the Tom Petters Ponzi scheme.

Facing a maximum sentence of 20 years in prison, Bell pleaded guilty to one count of mail fraud in 2009, the Chicago Tribune reports. Bell is accused of not informing his investors about the possible fraud while allowing new investors to join his hedge fund. Bell also admitted helping set up 86 “round-trip” money transfers between his company, Lancelot Investment Management, and Petters Co. Inc.

Bell apologized to his investors and his family, in court he said he was sorry “for all the pain, shame and suffering.” the Chicago Tribune reports.

Alex Akesson
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