Jury Convicts Feeder Of $3.7B Petters Ponzi Scheme

Law360, Los Angeles (June 13, 2013, 9:52 PM EDT) -- A Minnesota federal jury on Wednesday convicted the former president of hedge fund Arrowhead Capital Management LLC on charges he intentionally misled investors while channeling funds into convicted fraudster Thomas Petters’ $3.7 billion Ponzi scheme, then lied to U.S. Securities and Exchange Commission investigators.

Following a four-week trial, the jury Wednesday found James Nathan Fry guilty of all 12 counts against him — five counts of securities fraud, four counts of wire fraud and three counts of lying to SEC officials during their investigation of Arrowhead,...
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