A Pittsburgh hedge fund manager was convicted today of defrauding Ohio’s workers’ compensation system. Mark Lay had been charged with losing $216 million he invested for the Ohio Bureau of Workers’ Compensation in a highly-levered hedge fund without authorization.
Lay, the CEO of MDL Capital Management, reportedly appeared stunned when the verdicts were announced. He faces up to 20 years in prison for investment advisory fraud, mail fraud and conspiracy to commit mail and wire fraud, though he is expected to receive about half that under sentencing guidelines. Prosecutors are also seeking to recoup $1.7 million in fees BWC paid to MDL.