Caspersen Judge Told Plea Talks in Fraud Case Moving Aheadby and
Wall Street scion Caspersen accused of cheating investors
Louis Bacon's charitable foundation said to lose $25 million
Plea talks between federal prosecutors and ex-investment bank executive Andrew Caspersen, who is accused of defrauding friends, family and a charitable foundation of $25 million, are incomplete but moving forward.
The negotiations were cited in an April 26 government filing made public Monday in Manhattan federal court. In it, prosecutors sought a one-month extension to either resolve the case or return an indictment against Caspersen, who was arrested in March.
“The negotiations have not been completed and we plan to continue our discussions,” Assistant U.S. Attorney Christine Magdo wrote.
Caspersen allegedly stole $25 million from Bacon’s foundation and then tried to solicit $20 million more, as well as $50 million from a private-equity firm, according to prosecutors. Caspersen lost most of the money in risky stock option trades over a four-week period late last year, prosecutors said.
Caspersen worked for Coller Capital for about a decade before moving in 2013 to Park Hill Group, then a part of private-equity giant Blackstone Group LP. Park Hill, which helps raise capital for hedge funds, private equity firms and secondary funds, was spun out by Blackstone and is now owned by Paul J. Taubman’s PJT Partners Inc.
Last month, Paul Shechtman, Caspersen’s lawyer, told a judge that the case may be resolved within 60 days without a trial. On the day charges were announced, PJT said Caspersen was terminated for cause and all of his deferred compensation was forfeited.
Caspersen is charged with securities fraud and wire fraud and faces a maximum prison term of 20 years on each count. He is next scheduled to appear in court on May 26.
The case is U.S. v. Caspersen, 16-mj-2011, U.S. District Court, Southern District of New York (Manhattan).