The U.S. District Court in Tampa, Fla., has convicted Steven Adler, former president of Vector Index Advisors and manager of the ASM Index 30 Fund, of misappropriating $1.9 million from 11 investors [see MFMN 12/03/01].
The court found Adler guilty of 20 counts of mail and wire fraud. Instead of investing the $1.9 million that Adler's investors intended for the ASM Index 30 Fund, the fund manager used some of the money to pay company expenses, the court charged. Adler then mailed fictitious statements to make it appear that the money had been invested, according to the court. In other cases, the court charged, Adler invested the funds but then illegally instructed the fund's investment advisor to transfer the monies to a bank account that he controlled.