Florida Man Sentenced to Six Years for $1M Fraud
The U.S. District Court for the Southern District of New York Feb. 22 sentenced a Florida man to serve 74 months in prison followed by two years of supervised release for his role in an investment scheme that defrauded foreign investors out of nearly $1 million, U.S. Attorney for the Southern District of New York Preet Bharara announced the same day (United States v. Bodden, S.D.N.Y., No. 12-CR-291, 2/22/13).
Judge Katherine B. Forrest also ordered the defendant, Cliffe R. Bodden, to pay a $25,000 fine, a $200 special assessment, and $946,509 in restitution and forfeiture.
“With today’s sentence, Cliffe Bodden now knows there is a price to be paid for lying to investors, no matter where the victims live,” Bharara said in the announcement.
According to Bharara, Bodden held himself out as a managing director of Lempert Capital Management Ltd.–a corporation purportedly incorporated in the Cayman Islands–and lured investors under the pretense that their funds would be invested in the U.S. financial markets. Bodden, however, misappropriated and diverted investor funds to various entities affiliated the scheme, Bharara said. To keep the scheme going, Bharara continued, Bodden sent fraudulent account statements to the investors and prevented investors from withdrawing their fundswith a variety of false and fraudulent excuses.
Bodden pleaded guilty to one count of conspiracy to commit wire fraud and one count of wire fraud in September. Charges against Bodden’s co-defendant S. George Milter remain pending, Bharara said.
To see the announcement, go to http://about.bloomberglaw.com/blaw2/files/2013/02/Bodden-Cliffe-Sentencing-PR.pdf.