California Investment Manager Pleads to $8.3 Million Fraud

November 5, 2009

A San Francisco investment manager is facing a maximum sentence of 20 years in prison after pleading guilty to fraud.

Federal prosecutors say in pleading guilty to mail fraud Tuesday, Alexander Trabulse admitted that he mailed fraudulent account statements to investors in funds he managed known as the Fahey Hedge Fund and Fahey Financial Group.

Prosecutors estimate that between1998 and 2007 investors lost about $8.3 million because of the bogus statements.

The 62-year-old Trabulse is due to be sentenced in March. Besides a prison term, he’s also facing fines and may be ordered to pay restitution.