Hedge Fund Founder Peterson Gets 13 Years For Fraud

Jan 23 2015 | 8:19am ET

It’s off to the pokey for Weavering Capital founder Magnus Peterson.

Today, the former hedge fund head was sentenced to 13 years in prison in the U.K. for fraud.

On Monday, the 51-year-old Peterson was found guilty of eight charges, and was acquitted of eight others. He

“Throughout the fund’s existence, Mr. Peterson rewarded himself handsomely from investors’ monies,” the Serious Fraud Office said in a statement earlier this week. “Whilst Mr. Peterson knew full well what the true value of the fund was when it collapsed, his investors did not. To them, the extensive losses they suffered came as a complete shock.”

Peterson’s hedge fund collapsed in 2009 in the wake of the 2008 credit crisis. It was then revealed that Peterson had stolen 7 million pounds ($10.6 million) of investor money over six years. Investors lost an estimated $530 million.

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