Ex-Hund Fund Manager Charged With Fraud
John H. Whittier, the former head of Idaho hedge-fund company Wood River Capital Management LLC, has been indicted on criminal charges that he engaged in a securities fraud scheme that allegedly cost investors $88 million. The U.S. Attorney's office said that Whittier was charged with securities fraud, failure to disclose a beneficial interest in 5% or more in a publicly traded security and two counts of failing to disclose a beneficial interest of 10% or more in a publicly traded security.
Whittier faces 20 years in prison for each count. Prosecutors say that Whittier planned to defraud investors in the company's U.S. based hedge funds by gaining beneficial ownership by more than 70% of the common stock of EndWave without disclosing ownership, as required by the Securities and Exchange Commission.
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