Manhattan federal prosecutors on Friday separately charged two investment advisers with defrauding and stealing from investors in the hedge funds they managed. Berton Hochfeld, manager of Hochfeld Capital Management, LLC, was arrested at his residence in Stamford, Connecticut, on securities and wire fraud charges for orchestrating a scheme in which he allegedly stole over $1 million from investors. If convicted, Hochfeld faces up to 40 years in federal prison, a fine of up to $5 million or twice the gross gain or loss derived from the securities fraud charge and up to $250,000 or twice the gross gain or loss derived from the wire fraud. According to court filings, Hochfeld Capital was the general partner of the Heppelwhite Fund, LP, a hedge fund that was formed to invest in publicly traded securities, mainly in the technology sector. In connection with managing the fund, Hochfeld allegedly made false representations to investors about their investments, and misappropriated their
↧