A San Diego hedge fund partner accused of diverting investor money for his personal use was sentenced to six years in federal prison and ordered to pay $49 million in restitution to victims, the U.S. Attorney’s office said April 7.
Marvin Irwin Friedman, of La Jolla, pleaded guilty to participating in a scheme to defraud investors in the Global Money Management fund, which collapsed in March 2004 after the Securities and Exchange Commission sued the hedge fund.
Friedman pleaded guilty to one count of conspiracy and one count of filing a false tax return.
“As a massive fraud masquerading behind an aura of legitimacy, Global Money Management was a huge tragedy for its investors,” said U.S. Attorney Karen Hewitt. “Friedman betrayed the trust of these investors and today’s sentence ensures the victims of his crime will receive some measure of justice.”
, Heather Chambers