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September 15, 2005 01:00 AM

Failure of settlement by Chapman could mean Maryland trial

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    Former money manager Nathan A. Chapman faces a federal trial on three bank fraud charges after he failed to pay $215,000 in a settlement reached in June with Allen F. Loucks, U.S. attorney in Maryland, said Vickie LeDuc, spokeswoman for Mr. Loucks' office. Mr. Chapman, who managed assets for the $30.1 billion Maryland State Retirement & Pension System, Baltimore, failed to pay the settlement money by the original deadline of Aug. 16 or an extended deadline of Sept. 9, said Ms. LeDuc. The U.S. attorney's office earlier today filed a motion with U.S. District Court in Baltimore asking to schedule a trial; no date had been set by press time. The three charges involve Mr. Chapman's purchase and sale of a residence in Clarksville, Md., in 1999. He was sentenced in November to seven years in prison and ordered to pay more than $5 million restitution after he was found guilty in August 2004 of defrauding the state retirement system and looting his own investment company. Mr. Chapman is free while he appeals the conviction.

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