CHICAGO, Nov 17 (Reuters) - A federal judge on Thursday
handed a 20-year prison sentence to Philip Baker, the former
managing director of the collapsed Chicago hedge fund Lake
Shore Asset Management Ltd.
Baker, a 46-year-old Canadian citizen, was sentenced to the
maximum for a single wire fraud count by U.S. District Judge
John Darrah for his role in soliciting $294 million from 900
investors worldwide, according to the office of U.S. Attorney
Patrick Fitzgerald in Chicago.
Darrah also ordered Baker to pay $155 million in
restitution, representing the outstanding losses to investors.
Baker averted a trial by pleading guilty in August. He has
been in U.S. custody since December 2009, six months after a
27-count indictment against him was made public. Baker had been
living in Hamburg, Germany.
According to the plea agreement, Baker from 2002 to 2007
fraudulently solicited $294 million to invest in commodity
pools, for the purpose of trading futures. He admitted
misappropriating at least $30 million for his own use and for
another Lake Shore director.
Prosecutors said Baker advertised annual double-digit
returns from some Lake Shore investments, reaching as high as
55.5 percent, when in fact he was hiding millions of dollars of
The Commodity Futures Trading Commission won a court order
freezing Lake Shore's assets and a receiver has returned $120
million to investors so far, Fitzgerald's office said.
The case is U.S. v. Baker, U.S. District Court, Northern
District of Chicago, No. 09-00175.
For Baker: Amy Pines of Levenfeld Pearlstein; Kurt Stitcher
and Mindy Finnigan of Baker & Daniels.
For the U.S.: Clifford Histed and Carol Bell of the United
States Attorney's Office.
(Reporting by Andrew Stern)
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