Mark Nordlicht, the founder of the now-defunct Platinum Partners hedge fund, has been sentenced to six months of home confinement for his role in a scheme to defraud bondholders of an oil and gas company, according to report by Reuters.

The sentencing, which includes a $5,000 fine, was delivered by US District Judge Brian Cogan in Brooklyn, five years after Nordlicht's conviction and following numerous legal challenges.

Platinum Partners managed over $1.7bn in assets before its collapse, which prosecutors labeled a $1bn investment fraud.

Nordlicht was initially charged in December 2016 for his alleged role in defrauding bondholders of Black Elk Energy Operations, a company backed by Platinum. Prosecutors accused Nordlicht and his associates of rigging a vote to ensure that proceeds from Black Elk asset sales went to insiders before the company's 2015 bankruptcy. The scheme allegedly looted about $70m.

Nordlicht, who also served as Platinum’s Co-Chief Investment Officer, was found guilty by jurors of securities fraud, securities fraud conspiracy, and wire fraud conspiracy, while being acquitted of other charges. Judge Cogan initially set aside the conviction and ordered a new trial, but a federal appeals court later reinstated the conviction. Nordlicht's appeal to the US Supreme Court was unsuccessful, and last July, Cogan dismissed the wire fraud conspiracy count.

Prosecutors had sought a prison sentence for Nordlicht, arguing that a sentence without incarceration would imply that the wealthy and powerful could evade punishment for criminal conduct. In contrast, Nordlicht's lawyers requested time served, citing the destruction of his reputation and life savings as sufficient deterrents.

Nordlicht's co-defendants received lighter sentences: former Platinum co-CIO David Levy was sentenced to time served, and former portfolio manager Daniel Small received 10 months of probation.