Investment described as 'beyond crazy' |
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Mon, 29 Oct 2007 17:16
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AKRON, Ohio (AP) - A federal prosecutor said Monday that an investment adviser took such an 'insane' amount of risk with a fund for injured state workers that he ultimately lost $215 million of the agency's money.'This is beyond crazy. This is a suicidal level of risk. In one trade you could win it all or lose it all. This is absolutely insane,' Assistant U.S. Attorney Antoinette Bacon said during closing arguments at the adviser's fraud trial in U.S. District Court.The adviser, Mark Lay, was indicted in June on charges of investment advisory fraud, mail fraud, and conspiracy to commit mail and wire fraud as part of an investigation into an investment scandal at the state's agency for injured workers.Bacon said the risk Lay took could be equated with someone driving more than 7,000 miles per hour in a 55 mph zone.Her closing came before Lay's defense was to have its chance. Lay's attorneys have said he followed state guidelines.The bureau was the sole investor in the hedge fund that Lay set up in Bermuda, according to the indictment against him. He is accused of repeatedly failing to tell bureau officials when questioned beginning in 2004 about the extent of the risk he was taking with the fund.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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