Guilty plea seen for Wall Street scion Caspersen in fraud case

Tue Jun 14, 2016 4:40pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Jonathan Stempel

NEW YORK (Reuters) - Wall Street executive Andrew Caspersen will likely plead guilty next month to criminal charges over an alleged $150 million fraud scheme, after compulsive gambling drove him to make huge, failed bets against the U.S. stock market, his lawyer said on Tuesday.

At a hearing in Manhattan federal court, Caspersen agreed to let prosecutors file a criminal "information" accusing him of securities fraud and wire fraud, and entered a not guilty plea.

When asked by U.S. District Judge Jed Rakoff whether a guilty plea was forthcoming, Caspersen's lawyer Paul Shechtman said: "I think that's most likely, your honor, almost certain."

A hearing is set for July 6.

Caspersen, 39, a graduate of Princeton University and Harvard Law School and son of late Wall Street financier Finn M.W. Caspersen, told Rakoff he was being treated for "compulsive gambling and related mental health" issues.

The defendant had worked at Park Hill Group, now a unit of investment banker Paul Taubman's PJT Partners Inc, prior to his March arrest and eventual firing.

Prosecutors said Caspersen ran a Ponzi-like scheme from November 2014 to March 2016 to defraud more than one dozen investors, including friends, family and classmates, of nearly $150 million.

They said he falsely claimed he would use the money to make secured loans to private equity firms, but instead traded it in his own accounts and made payments to earlier investors.   Continued...

Andrew Caspersen (R) departs after a hearing at the U.S. Federal Court in New York March 28, 2016.  REUTERS/Lucas Jackson