San Diego Union Tribune – Ricky Dale Fenney, a hedge fund operator who defrauded investors of more than $2 million, was sentenced to three years, one month in federal prison. He pleaded guilty to wire fraud Dec. 20.
Between 2001 and 2004, Fenney set up hedge funds and signed up 17 clients whose money he used to day-trade on the Nasdaq Stock Market, according to his plea bargain. When he began losing money, in the first month, he didn’t tell investors, but instead sent out e-mail claiming extraordinary returns, and in the style of a Ponzi scheme, paid out early investors with money from other investors, according to court documents.
