Hedge Fund Manager Pleads Guilty to Fraud
John Whittier, the founder of now-defunct hedge fund Wood River Capital Management, pleaded guilty to defrauding investors of $88 million. Whittier pleaded guilty to securities fraud and to having not filed stock holding disclosures with the U.S. Securities and Exchange Commission. Whittier could have spent more than 20 years in jail, but likely will only spend between 15 and 19 years in prison. Whittier also will lose $5.5 million.
Whittier apologized for his actions: "I knew at the time that what I was doing was wrong. I have embarrassed myself and my family and caused harm to my investors. I am sincerely remorseful." Whittier was the co-head of media and telecommunications equity research at Donaldson, Lufkin & Jenrette.
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Legal View: Securities
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Meet John Whittier, Wood River Founder