Ex-hedge fund manager gets 8 years in prison for $22M scam
WHITE PLAINS, N.Y. (AP) — A former hedge fund manager has been sentenced in New York to eight years in prison after cheating 45 investors of over $22 million.
Michael Scronic was sentenced Thursday by U.S. District Judge Cathy Seibel in White Plains.
The 46-year-old Scronic also was ordered to pay $22 million to his victims.
He pleaded guilty in March, admitting he defrauded the investors over a seven-year period. Prosecutors said he stole about a half million dollars annually to fund his luxurious lifestyle.
Prosecutors say Scronic claimed that his hedge fund, run from his Pound Ridge, New York home, had a positive investment return when it lost money in every quarter but one.
His lawyers had sought a sentence of no more than three years, blaming Scronic’s crime on a compulsive gambling problem.