Hedge Fund Manager Avoids Jail Time For Fessing Up To Securities Fraud

It pays to tell the truth about your lies.
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Are you a hedge fund manager who's lost a lot of or, say, all of your investors' money? Are you in the process of covering up said losses and mentally drafting the lies you'll tell said investors re: where all the money went? Pro-tip: after you go through with all that, and the ensuing charges from regulators come, be quick about entering a guilty plea/admitting you told a few tall tails. It's the sort of thing at least one judge admires in a hedge fund manager.

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Owen Li, the founder of Canarsie Capital LLC, was sentenced to probation by U.S. District Judge Robert Sweet in Manhattan, prompting gasps from spectators in the courtroom...Sweet had in March indicated he would likely sentence Li to five years in prison, less than federal guidelines advise and in line with prosecutors' recommendation. But on Monday, he changed his mind. "You have done all a human being could do to go take responsibility and to clean up the tragedy," Sweet told Li. "Perhaps the lesson that comes out of this sentencing should be that there is redemption, and there is grace."

Prompting gasps, judge spares NY hedge fund exec prison for fraud [Reuters]

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