{"id":38552,"date":"2013-10-10T13:07:21","date_gmt":"2013-10-10T17:07:21","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=38552"},"modified":"2013-10-10T13:14:53","modified_gmt":"2013-10-10T17:14:53","slug":"hedge-fund-manager-gets-17-years-in-connection-with-petters-ponzi-sheme","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2013\/hedge-fund-manager-gets-17-years-in-connection-with-petters-ponzi-sheme.html","title":{"rendered":"Hedge Fund Manager Gets 17 Years In Connection With Petters Ponzi Sheme"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2013\/08\/jail.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright  wp-image-37265\" alt=\"jail\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2013\/08\/jail.jpg\" width=\"170\" height=\"240\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2013\/08\/jail.jpg 283w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2013\/08\/jail-212x300.jpg 212w\" sizes=\"auto, (max-width: 170px) 100vw, 170px\" \/><\/a>New York (HedgeCo.Net) &#8211; Hedge fund manager James Nathan Fry of Orono, Minnesota was\u00a0sentenced to 17\u00bd years in prison on\u00a0five counts of securities fraud, four counts of wire fraud, and three counts of making a false statement to the SEC.<\/p>\n<p>The StarTribune reports: &#8220;Fry\u2019s investors lost $120 million when the $3.65 billion Ponzi scheme engineered by Petters and associates collapsed in September 2008. Before that, however, he collected $40 million in fees and commissions from the transactions he conducted with the Petters operation.&#8221;<\/p>\n<p>Fry\u2019s company, Arrowhead Capital Management was one of the hedge funds that Thomas Petters used to\u00a0perpetuate the third-largest\u00a0hedge fund\u00a0fraud case in U.S. history. Petters used these funds to finance his big box and other acquisitions. He then fabricated retail orders from those acquisitions and used them as collateral to borrow more money through the funds.<\/p>\n<p>\u201cHe could have told investors the truth, but he didn\u2019t because he was worried people would pull their money out,\u201d \u00a0Assistant U.S. Attorney Tim Rank said before the sentencing yesterday. \u201cSo he chose to lie.\u201d<\/p>\n<p>Thomas Petters\u00a0was convicted of fraud and imprisoned at the\u00a0United States Penitentiary, Leavenworth. He was the former CEO and chairman of\u00a0Petters Group Worldwide. He resigned his position as CEO on September 29, 2008, amid mounting criminal investigations.\u00a0He later was convicted for turning Petters Group Worldwide into a $3.65 billion\u00a0Ponzi scheme\u00a0and received a 50 year federal sentence.<\/p>\n<p>Alex Akesson<br \/>\nEditor for\u00a0<a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; Hedge fund manager James Nathan Fry of Orono, Minnesota was\u00a0sentenced to 17\u00bd years in prison on\u00a0five counts of securities fraud, four counts of wire fraud, and three counts of making a false statement to the SEC. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-38552","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=38552"}],"version-history":[{"count":5,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38552\/revisions"}],"predecessor-version":[{"id":38560,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38552\/revisions\/38560"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=38552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=38552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=38552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}