K1 Hedge Funder Gets 10 Years For $500M Ponzi Scheme

Law360, New York (July 22, 2011, 5:36 PM EDT) -- A German court reportedly sentenced hedge fund luminary Helmut Kiener on Friday to more than 10 years in prison for running a Ponzi scheme that cost investors nearly $500 million.

Kiener, the founder of the K1 hedge fund group, received 10 years and eight months after confessing in April to conning major institutional investors in a trans-Atlantic fraud that bankrolled a lavish lifestyle of private planes and luxury residences, Reuters reported.

The court in Wuerzberg, Germany, sentenced Kiener on 86 counts of forging documents and 10...
To view the full article, register now.