Former Controller of Greenwich Hedge Fund Admits Embezzling More Than $9 Million
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that LAWRENCE J. HERZING, 45, of Greenwich, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in Bridgeport to one count of wire fraud stemming from his theft of more than $9 million from the hedge fund where he was employed.
According to court documents and statements made in court, HERZING was recently employed as the controller of Greenwich-based Contrarian Capital Management, L.L.C. On 32 occasions between 2004 and 2013, HERZING used his position to wire $9,202,417.54 from his employer to accounts that he controlled.
HERZING was arrested on October 29, 2014, and currently is released on a $5.6 million bond.
Judge Meyer scheduled sentencing for April 24, 2015, at which time HERZING faces a maximum term of imprisonment of 20 years, a fine and an order of restitution. HERZING also has agreed to forfeit his residence and approximately $1.8 million.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Heather Cherry.