June 21 (Bloomberg) -- Albert Hu, a California hedge-fund manager, was convicted by a federal jury of seven counts of mail fraud for running an investment scheme that targeted Chinese-American business leaders in Silicon Valley.
Hu, 50, who founded and operated hedge funds Asenqua Beta Fund and Fireside LS Fund out of offices in San Francisco, Sunnyvale, California, and Singapore, lied to investors when he promised returns of 20 percent to 30 percent and said his funds were affiliated with a prominent law firm and auditor, U.S. Attorney Melinda Haag in San Francisco said today in a statement.
Investors lost millions of dollars, most of which went to pay Hu’s personal expenses and prior investors and others, prosecutors said. A federal jury in San Jose convicted Hu yesterday after a three-week trial, Haag said.
Jerry Fong, an attorney for Hu, didn’t immediately return an e-mail seeking comment on the verdict.
Hu was arrested in Hong Kong in 2007 and extradited to the U.S., where he has been in custody. He is scheduled to be sentenced in September and faces as much as 20 years in prison and a $250,000 fine plus restitution.
The case is U.S. v Ke-Jeng Hu, 09-487, U.S. District Court, Northern District of California (San Jose).
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