Mass.-based scammer sentenced to 7 years |
Date: Wednesday, October 14, 2009
Author: Ben Bedell, boston.com
Convicted Ponzi scheme operator Michael C. Regan, who was accused of
stealing $8.9 million from investors, was sentenced to seven years in prison
yesterday in federal court in Brooklyn, N.Y.
Regan, a Massachusetts-based hedge fund manager, defrauded about 50
investors, beginning in 2000, prosecutors said in court papers. His River
Stream Fund collapsed in April 2008. Regan, 66, the fund’s sole manager,
turned himself in in May 2008 and pleaded guilty to one count of fraud the
following month. He began the fund in 1998 with money from friends and
acquaintances, according to the prosecution.
US District Judge Carol Amon described Regan as “someone who took money from
the vulnerable who were less likely to look beyond the facade,’’ noting that
a widow and a number of young adults and elderly were among his victims. She
said statements from victims showed that “financial crimes impact victims as
much as physical crimes.’’
While Regan agreed to pay restitution of the $8.9 million, he filed for
bankruptcy protection after turning himself in. Regan took $2.5 million for
his personal use, according to court papers.
The government said it is unlikely his victims will ever be compensated.
Regan could face additional criminal charges for failing to file tax returns
for 10 years. He also faces a civil suit filed by the Securities and
Exchange Commission.