San Diego Union Tribune – The head of a San Diego hedge-fund partnership that lost up to $60 million of investor funds pleaded guilty yesterday to tax evasion and conspiracy to commit mail fraud infederal court in San Diego.
Marvin Irwin Friedman entered his plea before U.S. Magistrate Judge Cathy Ann Bencivengo in the March 2004 collapse of Global Money Management, a $116 million hedge fund.
Friedman is scheduled to be sentenced May 15. He could receive a maximum of eight years in prison on the two charges, said Assistant U.S. Attorney Faith Devine, who prosecuted the case.
Two other people – GMM fund co-manager Paul Henrie Levy and bookkeeper Alice Mae Swiderski – previously pleaded innocent and await trial.
A trial date of April 4 was delayed yesterday by Bencivengo over a potential conflict of interest by Levy’s attorney.
The three operators of the hedge fund were charged last June in a 36-count indictment on charges including conspiracy, perjury, mail and wire fraud, money laundering and tax fraud.
