Ezra C. Levy, former CFO of Boston Provident, was arrested Nov. 10 and charged with stealing $1.3 million from the firm’s hedge funds.
Mr. Levy was charged in U.S. District Court in New York with criminal securities fraud and theft. Mr. Levy faces similar civil charges from the SEC in the same court.
The theft was discovered and reported to the office of U.S. Attorney Preet Bharara in New York by Orin S. Kramer, Boston Provident’s general partner and CEO as well as chairman of the $68.7 billion New Jersey State Investment Council, Trenton.
According to a news release from Mr. Bharara’s office in New York and court documents, Mr. Levy used Boston Provident’s trading system to secretly sell securities from his personal account at inflated prices that he allegedly bought for the firm’s accounts.
Neither Mr. Levy nor his attorney could be reached for comment by press time.
Mr. Levy was terminated by Boston Provident, according to a company statement. “Boston Provident was outraged to learn of the theft carried out by a former employee,” according to the statement, Mr. Kramer will cover any fees associated with Mr. Levy’s alleged criminal conduct and will restore the stolen money to the hedge funds.
The statement said the firm “intends to seize Mr. Levy’s assets in the partnership and is working with government agencies in seeking to freeze Mr. Levy’s other personal assets.”
Boston Provident has $135 million in assets under management, according to its SEC ADV filing.