Edward Strafaci, a former senior trader with Lipper Holdings, faces up to 10 years in prison for defrauding investors by overstating the values of at least two hedge funds

Strafaci pleaded guilty in Manhattan federal court this week to charges of falsifying account values of two hedge funds, the Associated Press reports.

Strafaci resigned in 2002 from Lipper Holdings, which is not affiliated with the investment research firm known as Lipper, and now faces up to 10 years in prison when he is sentenced in December. Prosecutors noted that one of the funds Strafaci overstated was valued at $722 million and later liquidated for only $365 million.

Former New York City Deputy Mayor Kenneth Lipper, who managed Lipper Holdings, has not been charged by prosecutors, but investors have filed civil suits against him to recover their investment losses.

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