Wednesday, October 31, 2007
The defendant’s lawyer said he expects the prison sentence to be 8-10 years.
AKRON (AP) — An investment adviser was convicted Tuesday of several fraud charges related to the state agency for injured workers’ loss of $216 million in a high-risk hedge fund.
Mark Lay, chief executive and founder of MDL Capital Management of Pittsburgh, looked at the jury, appearing stunned, after the first verdict was read, rubbed his hands together and leaned back in his chair.
The U.S. District Court jury deliberated for about 21⁄2 hours Monday and reached its verdict Tuesday afternoon. Lay was found guilty of investment advisory fraud, mail fraud, and conspiracy to commit mail and wire fraud.
Prosecutors said Lay hid the extent of the risk he took and went way beyond the limit state officials set.
Lay faces a maximum sentence of 20 years in prison, but will likely receive less time under federal sentencing guidelines. His lawyer, Richard Kerger, said he expects Lay’s prison sentence will be in the range of 8-10 years.
The charges against Lay were part of an investigation into an investment scandal at the Ohio Bureau of Workers’ Compensation that reached to former Gov. Bob Taft.
Judge David D. Dowd Jr. continued Lay’s bond and said he would be sentenced early next year.
Kerger said he was stunned by the jury’s decision, and that he would seek to have the judge overturn the verdict. If that failed, he said there would be an appeal.