Mark Lay, founder of MDL Capital Management, has agreed to pay $5 million to the $19 billion Ohio Bureau of Workers’ Compensation, Columbus, to settle a civil suit filed by the Ohio Attorney General Marc Dann on behalf of the fund, confirmed Ted Hart, a spokesman for Mr. Dann.
The charges stem from a 2005 investigation after the bureau lost more than $200 million in a hedge fund managed by Mr. Lay.
In October, Mr. Lay was found guilty in U.S. District Court in Akron, Ohio, of one count of investment advisory fraud, one count of conspiracy to commit or attempt mail fraud and wire fraud, and two counts of mail fraud and aiding and abetting. Mr. Lay is appealing those verdicts.
