Heading Up The (Wood) River

by: Greg Newton

So farewell then, John Whitter, for the next 15½-19½ years, headed—like his investors—up the creek without a paddle after he admitted splashing an $88 million endwave.

Quote of note:

"I knew at the time that what I was doing was wrong. I have embarrassed myself and my family and caused harm to my investors,” Whittier told U.S. District Judge Jed Rakoff. “I am sincerely remorseful."

Especially about getting caught. Whittier’s sentencing is set for Oct. 15, on which date he seems in line to pay a considerable premium over that not-so-long ago awarded to Scott Sacane, erstwhile principal of Durus Capital Management, for a not dissimilar stunt.

Hedge fund manager pleads guilty to fraud
By Christine Kearney
Reuters May 31 2007