Former mutual fund executive John Mattera has been sentenced 11 jail term after pleading guilty to defrauding investors in a $13m scheme for falsely claiming that his fund owned shares in companies including Facebook and Groupon.
Bloomberg reported that US District Judge, Richard Sullivan, told Mattera before sentencing him that: "These crimes were just so selfish, so callous toward the victims."
Mattera admitted in October 2012 that he used his fund, Praetorian Global Fund, to defraud more than 140 investors and pleaded guilty to securities fraud, wire fraud and money laundering and conspiracy in connection with the scheme.
He said investors believed his claims and sent over $11m into escrow accounts maintained by him at a Florida bank in the US.
Mattera gave assurance to investors that their money would be held in the escrow accounts until the offering is completed or until other event takes place.
Mattera also admitted that he took $2m more from investors who thought he was investing in Facebook and Groupon while the companies were still private by claiming he owned more than a million shares in the companies.
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