Stanley Kowalewski Sentenced to 18 Years’ Imprisonment for Wire Fraud and Obstruction of Justice
On March 25, 2016, the Honorable Richard W. Story of the United States District Court for the Northern District of Georgia sentenced Stanley Kowalewski to 18 years’ imprisonment for defrauding the investors in his hedge funds and obstructing the SEC’s earlier related investigation. In February 2013, a federal grand jury in Atlanta indicted Kowalewski with wire fraud and obstruction of justice. According to the indictment, beginning in 2009, Kowalewski solicited investment money from pension funds, school endowments, hospitals, non-profit foundations, and other investors which he placed in various hedge funds that he controlled. Almost immediately after receiving the first investor money, Kowalewski began diverting the proceeds to pay for personal and business overhead expenses. In November 2015, Kowalewski was found guilty after a jury trial on 24 criminal charges, including falsely testifying in a related SEC investigation about the use of investors’ funds.
The SEC filed a related civil injunctive action against Kowalewski in January 2011. In August 2012, Kowalewski was ordered to pay approximately $8.6 million in disgorgement and interest and approximately $8.4 million in civil penalties. Separately, in September 2011, the SEC barred Kowalewski from association with any broker-dealer or investment adviser.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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Brenda Hamilton, Securities Attorney
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