"Regensberg, Investment Adviser, Sentenced to 9 Years (Update1)
By David Glovin
June 19 (Bloomberg) -- Hayim Regensberg, the former president of Arbco Capital Management LLP and Mid West Trading LLC, was sentenced to more than nine years in prison for defrauding investors in an $13 million Ponzi scheme, prosecutors said.
Regensberg, 44, was found guilty in April of two counts of securities fraud and seven counts of wire fraud. He was sentenced to 100 months in prison by U.S. District Judge Victor Marrero in New York.
The money-manager was arrested in 2007. He told investors he had access to foreign initial public offerings before the general public did and that his investors could receive returns of 5 percent to 15 percent within weeks, prosecutors said.
“He invested and lost large portions of investor money in highly speculative and risky trading,” Acting U.S. Attorney Lev Dassin in New York said today in a statement. He “also paid out to earlier investors money he took in from later investors,” the prosecutor said.
Robert Baum, a federal public defender for Regensberg, said he will appeal and declined to comment further.
The case is U.S. v. Regensberg, 07-cr- 1865, U.S. District Court, Southern District of New York (Manhattan).