Man Sentenced for Investment Fraud Involving Sumter Company
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina –--United States Attorney Bill Nettles stated that Paul D. Pomfret, age 49, formerly of Palm Beach, Florida, was sentenced to 63 months imprisonment in federal court in Columbia. He was also ordered to pay $1,631,090 to various victims. Pomfret pled guilty May 23, 2013, to Wire Fraud, a violation of Title 18, United States Code, Section 1343. United States District Judge Cameron McGowan Currie presided over the case.
Evidence presented at the change of plea hearing established that Pomfret was a hedge fund manager who operated PDP Capital Investments in Palm Beach, Florida. In January 2010, Pomfret met the CEO of a Sumter-area business during a business trip to the Cayman Islands, during which he pitched his investment company. Over the next couple of months, Pomfret provided several documents pertaining to his funds, which were hedge “funds of funds.” In a fund of funds, an individual can provide money to a single hedge fund, and then that money buys into multiple funds overseen by different managers. Pomfret indicated his fund invested in approximately twenty such hedge funds around the world.
Eventually, the Sumter-area company sent Pomfret $500,000 by bank wire transfer. Contrary to what had been represented by Pomfret, the money was not invested in a "fund of funds," but went to pay off two previous investors. At that point, in fact, the "fund of funds" was largely shut down, and most of the money received by Pomfret was tied up in a beach house and promissory notes. All of the $500,000 investment eventually was lost. The $1.6 million in restitution resulted from other individuals who fell victim to similar promises.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston D. Holliday, Jr., of the Columbia office handled the case.