HedgeCo.net (West Palm Beach) – ‘Hedge fund operator’ Rod Stringer has pleaded guilty to money laundering in a $14 million Ponzi scheme, federal prosecutors say.<\/p>\n
He allegedly took money from 44 victims over 8 years, claiming to be "a day trader and hedge fund operator, although he was not a licensed securities broker," the U.S. Attorney’s Office said. <\/p>\n
According to the Securities and Exchange Commission, Stringer doled out about half the money from the phoney Texas hedge fund to some victims, but kept $6.9 million for himself.<\/p>\n
"He solicited and enticed individuals to invest money with him by making false representations and promises, such as: the return on investors’ money would be approximately 50% profit; he was a day trader and had a foolproof system; the return on investors’ money would be better than a savings account; the accounts were liquid and investors could withdraw their money anytime; and he had several computers that watched the trend line of stocks automatically and advised him when he should move money in and out of the market," a written statement from prosecutors said.<\/p>\n
Stringer faces up to 10 years in prison, a $250,000 fine and restitution. The plea agreement calls for Stringer to forfeit more than $1.5 million, according to Courthouse News Service.<\/p>\n
Alex Akesson<\/p>\n
Editor for HedgeCo.net
alex@hedgeco<\/span>.net<\/a><\/p>\n