Feds Charge Manager in Hedge Fund Collapse

Federal law enforcement officials have a warrant  to arrest Kirk Wright, who is accused of defrauding investors of between $150 and $180 million in assets while managing funds for International Management Associates and International Management Associates Advisory Group, according to MarketWatch.

Wright, a 35-year old resident of Marietta, Ga., is a fugitive, wanted by the Federal Bureau of Investigation.

In a March 10 complaint unsealed by the Department of Justice Wednesday,  the government claims that Wright lied to clients, claiming that his funds held more than $150 million. In fact, Wright fabricated statements from the custodian, brokerage firm Ameritrade, which has since become TD AmeriTrade Holding Corp, according to the U.S. Attorney's Office.

In some cases, Wright showed statements for accounts that did not, in  fact, exist, while in other cases, he overstated balances by as much as 1,000 times the actual value, according  to the complaint.

The mail fraud charges stem from the fact Wright mailed fraudulent statements to client Stephen Atwater. Atwater, who played football for the NY Jets and the Denver Broncos, was one of several active and retired professional football player clients who Wright allegedly cheated.  The Securities and Exchange Commission, Atwater and several others have all filed lawsuits against Wright.

If convicted, Wright could face a maximum sentence of 20 years in prison and a fine of $250,000 for the mail fraud charges.

Wright's attorney was unavailable for comment Wednesday, but last month told the Wall Street Journal that Wright hopes to resolve the issue and satisfy his investors.