Former hedge fund manager Yusaf Jawed has been sentenced to 78 months for his participation in a $37 million Ponzi scheme.
Business Journal reported that the sentencing also includes a $6.4 million judgment, following Jawed’s guilty plea in April to five counts of mail fraud and 12 counts of wire fraud through the scheme he conducted through his hedge fund firm, Grifphon Asset Management.
Separately, Jawed has also agreed to pay nearly $34 million to settle a civil lawsuit brought by the Securities and Exchange Commission.
Jawed, who was accused of raising at least $37 million from 100 U.S. investors, allegedly misappropriated millions of dollars for his personal use, which included luxury vacations, lavish meals and using nearly $60,000 to settle a sexual harassment lawsuit.
The article added that since Jawed does not have the finances to pay both fines, the federal government will likely garnish 10% of his after-tax wages after his prison term.