U.S. Eyes Long Prison Term for Wall Street Scion's FraudU.S. Eyes Long Prison Term for Wall Street Scion's Fraud
Prosecutors claim that Andrew Caspersen ran a Ponzi-like scheme that defrauded friends, family and a charity out of $38 million.
October 27, 2016
By Jonathan Stempel
NEW YORK, Oct 27 (Reuters) - U.S. prosecutors on Thursdaysaid Andrew Caspersen, the scion of a wealthy Wall Streetfamily, should spend as long as 15-2/3 years in prison after hepleaded guilty to defrauding friends, family and a charity outof more than $38 million.
In papers filed with the federal court in Manhattan,prosecutors said Caspersen, 40, who had worked at a unit ofinvestment banker Paul Taubman's PJT Partners Inc,abused the trust of his victims through his "long-running,significant and elaborate" fraud.
Prosecutors said the son of late Wall Street financier FinnM.W. Caspersen ran a Ponzi-like scheme from November 2014 toMarch 2016 to defraud more than one dozen investors, claiming hewould use their funds to make loans to private equity firms.
Instead, prosecutors said Andrew Caspersen used money heraised to trade in his own accounts and pay earlier investors.
Though lawyers for Caspersen have said a "pathological"gambling disorder and mental health issues fueled their client'scrimes, prosecutors said the 151- to 188-month prison termrecommended under federal guidelines was justified.
The sentencing request came six days after Caspersen'slawyers said the Princeton University and Harvard Law Schoolgraduate's gambling addiction and efforts to rehabilitatehimself were among the "powerful mitigating circumstances"justifying leniency.
Caspersen is scheduled to be sentenced in Manhattan on Nov.4 by U.S. District Judge Jed Rakoff, a prominent critic offederal sentencing guidelines.
The judge told Caspersen at his July 6 plea hearing that hewould consider the guidelines when imposing punishment, but thatthey "border on the irrational, and I like a sentence to berational."
Caspersen has agreed not to appeal any prison term longerthan 15-2/3 years. He also agreed to forfeit more than $45million, though his lawyer has said he cannot afford that sum.
The case is U.S. v. Caspersen, U.S. District Court, SouthernDistrict of New York, No. 16-cr-00414. (Reporting by Jonathan Stempel in New York; Additionalreporting by Nate Raymond; Editing by Jonathan Oatis)
