Ex-Maryland money manager pleads guilty to fraud

Nathan Chapman Jr., a former money manager who ran assets for the $34.4 billion Maryland State Retirement & Pension System, Baltimore, pleaded guilty Monday to fraud charges stemming from use of his investment company's funds for a real estate purchase, according to a news release from the office of Rod J. Rosenstein, U.S. Attorney for the District of Maryland, in Baltimore. Mr. Chapman will pay $40,000 in restitution and was sentenced to a year of probation. In 2004, Mr. Chapman was sentenced to 7%BD; years in prison after being convicted on separate charges of defrauding the Maryland pension fund and shareholders in his companies. Mr. Chapman is appealing the conviction before a federal appeals court in Richmond, Va., according to the news release. Mr. Chapman is free pending a decision on his appeal.