Justin Paperny, a 31-year-old broker with Capital Management Group admitted attempting, along with fellow broker Keith Gilabert, of attempting to defraud 40 investors of $2.5 million by misrepresenting the performance the firm’s hedge fund, GLT Venture Fund, according to the Federal Bureau of Investigation, the Los Angeles Daily News reports.

At his July 30 sentencing before U.S. District Judge Stephen V. Wilson, Paperny faces a maximum of five years in federal jail.

Gilabert pleaded guilty last year to conspiracy and will be sentenced on July 23.

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