ST. PAUL, Minn. (AP) — A Mound hedge fund manager has been sentenced to more than 17 years in prison for misleading clients about their investments with convicted Minnesota businessman Tom Petters.
Federal prosecutors had asked U.S. District Judge Richard Kyle to sentence James Fry to 25 years in prison. Defense attorneys had asked for a sentence of less than six years.
The Star Tribune (http://bit.ly/1e9jJDq) reports Kyle sentenced Fry to 17.5 years.
In June, a jury found Fry guilty of 12 counts of fraud and making false statements to the Securities and Exchange Commission. Fry contends he never knew Petters was engaged in fraudulent activity.
Petters was convicted in 2009 of orchestrating the $3.65 billion Ponzi scheme and is serving a 50-year prison sentence. Fry’s investors lost $120 million when the scheme collapsed.
Information from: Star Tribune, http://www.startribune.com