Hedge Fund Fraudster Spared Prison as Judge Calls Him Noble (2)

A former Platinum Partners fund manager convicted over a scheme to rig a bond vote at an oil and gas company was spared prison by a judge who remains skeptical about the government’s case.

US District Judge Brian Cogan on Wednesday sentenced Daniel Small to probation over the objections of prosecutors, who said the ex-manager defrauded the company of $70 million and should serve six months to a year behind bars.

Cogan called Small “a rather noble character who made a criminal mistake” by cutting corners, but who didn’t commit “a serious crime to rob other people.”

‘Criminal Mistake’

“I ...