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Business

Ex-Silicon Valley Hedge Fund Manager Gets 12 Years For Fraud

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(CBS)

(CBS)

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SAN JOSE (CBS / AP) — A former Silicon Valley hedge fund manager has been sentenced to 12 years in federal prison for defrauding investors out of millions of dollars.

The San Jose Mercury News reported that a U.S. District Court judge on Monday imposed the sentence on Albert Ke-Jung Hu, who was convicted previously of seven counts of wire fraud.

Prosecutors said Hu scammed investors out of at least $6.5 million, luring them to his funds with false promises of financial backing from prominent law firms and auditors.

Hu ran the Asenqua Beta Fund and Fireside LS Fund, and promised investors a 20-to-30-percent return.

He was arrested in Hong Kong in 2009 after he fled the country.

The U.S. Securities and Exchange Commission has also filed a civil fraud case against Hu.

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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