Reuters- The founder of the defunct hedge fund Wood River Capital Management pleaded guilty in federal court in Manhattan on Wednesday to defrauding investors of $88 million (44 million pounds).
John Whittier, 40, pleaded guilty to securities fraud and failing to file required stock holding disclosures with the U.S. Securities and Exchange Commission in a plea bargain.
He could have faced more than 20 years in prison, but under the plea deal will likely receive between 15-1/2 years and 19-1/2 years in prison. when he is sentenced October 15. He will also forfeit more than $5.5 million as part of the deal.
“I knew at the time that what I was doing was wrong. I have embarrassed myself and my family and caused harm to my investors,” Whittier told U.S District Judge Jed Rakoff. “I am sincerely remorseful.”
Whittier, the former co-head of media and telecommunications equity research at Donaldson, Lufkin & Jenrette, admitted to amassing an 80 percent stake in Endwave Corp., a small Californian telecoms company, between 2004 and 2005, but failed to disclo
