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...
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