Ex-Hedge Fund Trader Receives 40 Months in Prison

Posted on November 19th, 2019 at 4:00 PM
Ex-Hedge Fund Trader Receives 40 Months in Prison

From the Desk of Jim Eccleston at Eccleston Law LLC:

A former Premium Point Investments trader received 40 months in prison for what federal prosecutors called a scheme to overinflate the fallen hedge fund's assets by $100 million by soliciting fake price quotes from a corrupt broker.

According to a recent Law 360 article, the judge ordered Jeremy Shor to report to prison on February 16, but also said she would consider an application for him to remain free while he appeals his conviction and sentence. She did not fine Shor but noted she will soon order him to make restitution to Premium Point investors, including Skybridge Capital. The amount is not determined yet.

Shor, who was convicted along with former Premium Point CEO Anilesh Ahuja by a jury on July 11 after a six-week trial, was fully aware of corruption at the fund, according to the court documents. The judge rejected Shor's argument that he was a whistleblower who tried to bring the misconduct to light.

The judge said that "I think that Mr. Shor saw the cesspool pretty quickly and jumped right in." He added that "it was Shor who brought in the corrupt broker for fake quotes to boost the fund's valuations starting in 2014 up to the time he left Premium Point in March 2016."

The sentence came in far below official sentencing guidelines, which suggested a prison term in the range of 16 years, primarily based on the $51 million loss to investors. Prosecutors said those guidelines were too high but requested a "substantial period of incarceration."

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, hedge fund management, fraud, scheme, solicitation, skybridge capital, corrupt broker

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