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Justice News

Department of Justice
U.S. Attorney’s Office
District of Connecticut

Monday, April 27, 2015

Former Controller of Greenwich Hedge Fund Sentenced to 4 Years in Prison for Embezzling More Than $9 Million

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 24, 2015, LAWRENCE J. HERZING, 45, of Greenwich, was sentenced by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for embezzling more than $9 million from the hedge fund where he was employed.

According to court documents and statements made in court, HERZING was employed as the controller of Greenwich-based Contrarian Capital Management, L.L.C.  On 32 occasions between 2004 and 2013, HERZING used his position to wire $9,202,417.54 from his employer to accounts that he controlled.

Judge Meyer ordered HERZING to pay full restitution.  HERZING has forfeited his residence and funds seized from his accounts, totaling more than $5 million.

HERZING was arrested on October 29, 2014.  On January 29, 2015, he pleaded guilty to one count of wire fraud.

This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Greenwich Police Department.  The case was prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.

Updated April 27, 2015