Ex-Wall Street Exec Sentenced To 4 Years In Fraud Case

NEW YORK, Nov 5, (APP - UrduPoint / Pakistan Point News - 05th Nov, 2016 ) - A Federal judge has sentenced a former Wall Street executive who defrauded friends and family members of $38.5 million to four years in prison.

Andrew Caspersen, an Ivy League-educated financier charged in a Ponzi scheme-like fraud, received a punishment much below the maximum 15.7 years in sentencing guidelines after US District Judge Jed Rakoff concluded his actions were mitigated somewhat by a gambling addiction.

Caspersen's conduct, while "egregious," should be treated differently from instances when someone makes a rational decision to violate the law, Rakoff said. The law distinguishes between those who "would rather do something harmful to others" and "those who act with diminished authority and are to some extent not operating with a full deck," the judge added at the hearing.

"No purpose will be served by letting him rot in prison for years on end." Rakoff also imposed three years of supervised release plus millions of Dollars of restitution to victims following a hearing that featured testimony from an expert in compulsive gambling and addiction who said Caspersen's gambling addiction was complicated by bouts of severe depression and alcoholism.

The judge is due to set a final figure for damages within 90 days. Prosecutors spoke of about $36 million ahead of formal filings. Caspersen, formerly of the Park Hill Group, pleaded guilty in July to defrauding close friends, family members and college classmates in a scheme that involved fake accounts and a bogus employee.

"Using his Wall Street pedigree, Andrew Caspersen deceived and defrauded investors -- including his own family and friends and a charity -- out of tens of millions of dollars," said US Attorney Preet Bharara. "Caspersen has admitted to his crimes and has now been sentenced to time in federal prison." Caspersen is scheduled to report to prison on January 4.