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Another Hedge Fund Fraud Results in Guilty Plea for GMM Head

The Toomre Capital Markets website has seen a tremendous pick-up in visitors after reporting on the alleged fraud of Kirk Wright and his International Management Associates hedge fund firm. Almost lost in the news reports is the story of another hedge fund fraud reaching a partial resolution. The SignonSandiego.com website run by the Union-Tribune reports in a story entitled GMM hedge-fund head pleads guilty reports that:

The head of a San Diego hedge-fund partnership that lost up to $60 million of investor funds pleaded guilty yesterday to tax evasion and conspiracy to commit mail fraud in federal court in San Diego.

Marvin Irwin Friedman entered his plea before U.S. Magistrate Judge Cathy Ann Bencivengo in the March 2004 collapse of Global Money Management, a $116 million hedge fund. Friedman is scheduled to be sentenced May 15. He could receive a maximum of eight years in prison on the two charges, said Assistant U.S. Attorney Faith Devine, who prosecuted the case. Two other people – GMM fund co-manager Paul Henrie Levy and bookkeeper Alice Mae Swiderski – previously pleaded innocent and await trial.