A former New York fund manager pleaded guilty on Wednesday to stealing $2.9 million from investors as part of a Ponzi scheme from 2011 to 2012.
Jason Konior, 39, defrauded clients by vowing to provide matching funds up to nine times the amount of their investments in his fund, Absolute, according to the U.S. Attorney's office in Manhattan.
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Instead, prosecutors said, Konior used the money he collected to pay his expenses and to cover redemption requests from prior investors.
In emails, phone conversations and text messages, Konior pretended to set up brokerage accounts for hedge fund investors when he had already stolen their money, prosecutors said.
Konior pleaded guilty in Manhattan federal court to one count of wire fraud, which carries up to 20 years in prison. His sentencing is scheduled for November 8 before U.S. District Judge Alvin Hellerstein.
Konior's lawyer, Douglas Jensen, declined to comment.
The case is U.S.A. v. Konior, U.S. District Court for the Southern District of New York, No. 13-275.
(Reporting by Joseph Ax; Editing by Stephen Coates)