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23 May 2008

False Asset Statments Lead to Conviction

Kirk Wright's Atlanta-based hedge fund company, International Management Associates was found to be fraudlent leading to the conviction of the manager, Wright, as the Department of Justice unsealed a March 10 criminal complaint against him.

"The complaint alleges a fraud involving $150 million to $180 million in missing investor assets managed by Wright's funds, International Management Associates and International Management Associates Advisory Group," said U.S. Attorney David Nahmias in a statement.

The federal complaint charges mail fraud, executed by mailing a set of false asset statements to IMA investor Stephen Atwater. The charge carries a maximum sentence of 20 years in prison and a fine of up to $250,000 on conviction.

According to authorities, Wright and his company collected more than $150 million spread across thousands of client accounts since 1997 and used false statements and documents to mislead some of them to believe the value of those investments was increasing.

Sentencing is set for August 26.

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