Lawrence J Herzing, the former controller of Contrarian Capital Management, has been sentenced to four years in prison after being found guilty of embezzling more than USD9 million from the Greenwich-based hedge fund.
Herzing’s 48-month jail term will be followed by three years of supervised release.
According to court documents and statements made in court, on 32 occasions between 2004 and 2013, Herzing used his position at Contrarian Capital Management to wire a total of USD9,202,417.54 from his employer to accounts that he controlled.
In sentencing, Judge Jeffrey AIker Meyer ordered Herzing to pay full restitution. He has also forfeited his residence and funds seized from his accounts, totalling more than USD5 million. Herzing was arrested on 29 October, 2014 following an investigation by the Federal Bureau of Information and pleaded guilty to one count of wire fraud on 29 January, 2015.
