John H. Whittier, former majority shareholder and principal executive of Wood River Capital Management hedge fund has been indicted on securities fraud and other charges, according to Dow Jones.
Investors in the Idaho-based hedge fund lost $88 million when two of its funds collapsed in 2005.
The U.S. Attorney’s office in Manhattan stated Whittier has been charged with securities fraud, failure to disclose a beneficial interest of 5% or more in a publicly traded security and two counts of failing to disclose a beneficial interest of 10% or more in a publicly traded security.
Whittier faces up to 20 years in prison on each count. He is expected to be arraigned on the charges in New York Thursday.
The Securities and Exchange Commission initially filed civil charges against Whittier and Wood River in October 2005, stating that he had misrepresented the funds’ management style.
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