A top hedge fund trader, Ezra Levy, was arrested today for alledgedly stealing more than $1.3 million from his employer, Boston Provident Partners, Orin Kramer’s (pictured) investment shop.
LEVY withdrew the money from the account at Washington Mutual Bank through numerous ATM withdrawals, electronic transfers to credit card companies, and transfers to a bank account in his name. Altogether, between January 2009 and October 2009, LEVY diverted more than $726,000 owing from the Issuer to the Hedge Fund to his LEVY is also charged with diverting money from the Hedge Fund for his personal benefit by causing the Hedge Fund to purchase stocks at inflated prices from an account that he personally controlled.
As the chief trader for the Hedge Fund, LEVY’s responsibilities included executing trades as directed by the firm’s General Partner and portfolio manager, but he was not authorised to make trades at his own discretion. In June 2009, LEVY engaged in trades on behalf of the Hedge Fund by purchasing stock in Atlas Energy and Atlas Energy Resources, at prices substantially higher than the prices at which those shares were trading in the stock market, from his own personal brokerage account. Altogether, LEVY’s trading resulted in more than approximately $600,000 in losses for the Hedge Fund’s trading account.
Kramer, who was a top Obama supporter and is chairman of the New Jersey State Investment Council, isn’t accused of wrong doing, nor is the fund. Indeed, he contacted authorities.
“Boston Provident terminated Mr. Levy immediately after learning about this outrageous conduct, and Mr. Kramer contacted the U.S. Attorney,” the firm said in a statement today to Bloomberg. Kramer will cover the firm’s losses and fees from the alleged crime.
Here’s the full complaint:Levy, Ezra Complaint
Image: New York Observer
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.