Skip to main content
Advertising

Originally published Tuesday, April 16, 2013 at 6:13 PM

  • Share:
           
  • Comments (0)
  • Print

Hedge fund manager pleads guilty to Ponzi scheme

A Portland hedge-fund manager pleaded guilty Tuesday to 17 counts of mail and wire fraud in a Ponzi scheme he orchestrated in Oregon, Washington and other states.

The Associated Press

Most Popular Comments
Hide / Show comments
No comments have been posted to this article.
Start the conversation >

advertising

PORTLAND, Ore. —

A Portland hedge-fund manager pleaded guilty Tuesday to 17 counts of mail and wire fraud in a Ponzi scheme he orchestrated in Oregon, Washington and other states.

Yusaf Jawed, 44, is scheduled to be sentenced June 21. As part of a plea agreement, prosecutors and the defense will recommend 6 1/2 years in prison, Assistant U.S. Attorney Allan Garten said.

Jawed has also agreed to forfeit $6.4 million in ill-gotten gains and make restitution to investors, if possible.

"No one expects the $6.4 million will ever be paid by him," Michael Esler, an attorney representing defrauded investors, told The Oregonian newspaper last week.

The crimes to which Jawed pleaded guilty dealt with money he took from investors between February 2008 and September 2009. The scheme, however, is believed to have lasted for more than a decade.

The Securities and Exchange Commission has filed a civil lawsuit against Jawed, alleging he falsely boasted of double-digit returns to lure more than 100 people to invest $37 million in hedge funds he managed. He then used money to pay off earlier investors and pay for his personal expenses and travel.

The complaint claims little of the money was invested. Jawed, who previously worked a stockbroker, allegedly created phony assets and sent bogus account statements to investors.

News where, when and how you want it

Email Icon


Advertising
The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►