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Ex-hedge fund manager gets 8 years in prison for $22M scam

September 27, 2018

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.

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