Fund Manager Gets Four Years in Prison in $106 Million Fraud (2)

A California mutual fund manager was sentenced to four years in prison for defrauding investors whose $106 million he said would be put in US Treasury bills and other safe assets but was instead lost in much riskier investments.

Ofer Abarbanel was sentenced Wednesday in Manhattan federal court. He pleaded guilty in September to investment adviser fraud, admitting that he lied to an investor group that was not named by prosecutors. A court document filed by the group identified it as Mosaic Financial Ltd. The group lost $20 million.

“My terrible failure does not represent who I am,” Abarbanel told ...