Post by privateinvestors on Sept 24, 2013 18:00:15 GMT 4
Hedge fund exec gets prison time for $311M swindle
PHILADELPHIA (AP) — Federal prosecutors in Philadelphia say a hedge fund executive who defrauded institutional investors of more than $300 million has been sentenced to serve 4-1/2 years in prison.
Philly.com reported (http://bit.ly/1b07M1I) Monday that 62-year-old John Tausche of Blowing Rock, N.C., was sentenced on bank fraud and money-laundering charges.
Prosecutors said Tausche partnered with K1 hedge fund group founder Helmut Kiener to swindle Barclays Bank, Bear Stearns and BNP Paribas out of $311 million.
Tausche pleaded guilty Nov. 6 in the Bear Stearns fraud. He pleaded guilty to another set of charges in connection with the Barclays scheme. He was ordered also to pay $115 million in restitution to Barclays.
Kiener was tried, convicted and jailed in Germany as a result of the scam and faces similar charges in the U.S.