Ezra Levy, a former trader and CFO of hedge fund Boston Provident Partners, was sentenced Monday to 67 months in prison for stealing about $3 million from the firm.
U.S. District Court Judge Kevin Castel also ordered Mr. Levy to pay $2.99 million in restitution and $12,500 in fines. He was ordered to surrender to federal prison by Sept. 7.
Mr. Levy pleaded guilty in March in U.S. District Court in New York to two schemes to defraud Boston Provident, run by Orin Kramer, the chairman of the $67.3 billion New Jersey State Investment Council. Mr. Levy admitted committing securities fraud and wire fraud.
In his guilty plea, Mr. Levy admitted that he transferred $2.45 million from Boston Provident to his own account. He also said he had the fund buy shares of Atlas Energy and another stock at inflated prices from an account he controlled, generating a $537,000 profit.
Mr. Levy used the proceeds for personal expenses, including credit card payments and purchases of real estate and Aston Martin auto, said prosecutors in the office of U.S. Attorney Preet Bharara in New York.
Prosecutors said in court papers that Mr. Levy faced 63 months to 78 months in prison under federal sentencing guidelines.
Katya Jestin, a lawyer for Mr. Levy, asked for leniency for her client, saying he suffered from Lyme disease, a “depressive disorder and alcoholism that may have impaired his ability to distinguish right from wrong at the time he committed fraud.
“Knowing that you have this secret and you engaged in this conduct and your life is based on lies should certainly cause you to experience a major depressive disorder,” Mr. Castel said. “There are those who think that if I can steal $3 million and I get caught and do five years, it’s not a bad transaction. That’s why it has to be made an unacceptable transaction.”
Mr. Castel rejected a request by defense lawyers to allow Mr. Levy to be free until October so that he could spend the Jewish holy days in September with his family and help his 6-year-old son adjust to a new school.
At the time of Mr. Levy’s arrest, Boston Provident said Mr. Kramer would cover the firm’s fees and losses from the crime. Boston Provident fired Mr. Levy after learning of the scheme.
