Court Approves Distribution Of $6.2M to Hochfeld’s Victims

Judge Paul G. Gardephe of the U.S. District Court for the Southern District of New York approved the distribution of $6.2 million to compensate victims of convicted fraudster Berton Hochfeld (SEC v. Hochfeld).

In a news release Oct. 11, the Securities and Exchange Commission said that the court previously entered judgements against Hochfeld and his hedge fund, Capital Management LLC, ordering injunctions, an asset freeze, and disgorgement and civil penalties in amounts to be determined by the court.

The SEC’s complaint, filed in November 2012, alleged that Hochfeld and HCM misappropriated assets and made material misstatements to investors ...