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Gemini’s Edward Stein sentenced to 9 years for Ponzi Scheme

Gemini’s Edward Stein sentenced to 9 years for Ponzi Scheme

Date: February 12th, 2010
Earlier this week, U.S. District Judge Jack B. Weinstein announced that he would shorten hedge fund manager Edward T. Stein’s prison sentence for running a $46 million Ponzi scheme from a maximum of nineteen years to nine years. A Bloomberg article states that the judge believes sixty-year-old Mr. Stein, who pleaded guilty to four counts of securities fraud and one charge of wire fraud last June, will not commit the crime again due to his age. Mr. Stein’s representative argued that he had assisted the government with locating assets to help pay back his victims. However, according to a government-appointed receiver, only $1.1 million out of the $46 million lost between 1998 and 2009 could be located.

Edward Stein’s hedge fund entities included the Gemini Fund I, L.P. hedge fund, DISP LLC and Prima Capital Management Corp.