Mark Lay, an investment advisor in Ohio, was sentenced to 12 years in prison following a loss of $216 million by Ohio’s agency for injured workers. The forty-five year old was the Chief Executive and Founder of MDL Capital Management, which is now defunct. Lay’s sentencing was the grand finale of a three year investigation into investment scandals at the Ohio Bureau for Workers’ Compensation.
The state of Ohio invested $225 million in a hedge fund Lay set up in Bermuda. The state lost all but $9 million. Lay reportedly borrowed against the fund, which caused almost $213 million of the $216-million loss.
Lay was convicted for investment advisory fraud, mail fraud and wire fraud. Prosecutors asserted that Lay concealed information from bureau staff and took unauthorized risks. He claimed that his poor investment choices were not a criminal offense.
U.S. District Court Judge David D. Dowd Jr. ordered Lay to pay restitution of more than $212.9 million. In addition, Lay must pay $590,526 in forfeiture.
If you were injured on the job and are not receiving the workers’ compensation you are owed, then contact our Massachusetts workers’ compensation lawyers. We are experienced in workers’ compensation, wrongful death, and related cases, so we can make sure you receive the medical treatment and financial compensation for your injuries.
Advisor gets 12 years in prison in Ohio investment scandal, Los Angeles Times, July 9, 2008
Finance exec gets 12 years in BWC fraud case, Business First of Columbus, July 8, 2008
Adviser gets 12 years in prison in Ohio fraud case, Associated Press, July 8, 2008