(Updates with attorney’s comment in fifth paragraph.)
Jan. 18 (Bloomberg) -- The former chief financial officer of Columbus Hill Capital Management LP, an investment management firm based in Short Hills, New Jersey, pleaded guilty to embezzling more than $10.4 million.
David Newmark, 39, admitted today in federal court in Newark, New Jersey, that he created a phony account to collect deposits that he stole from the company. Newmark, who pleaded guilty to wire fraud and tax evasion, agreed to forfeit the entire amount he stole.
“Making personal use of company cash, it was only a matter of time before he was caught with his hand in the piggy bank,” U.S. Attorney Paul Fishman said in a statement.
Newmark, of Towaco, New Jersey, faces as many as 20 years in prison on the fraud charge and five years on the tax evasion count. U.S. District Judge William Walls set sentencing for April 24.
Newmark’s attorney, Michael Himmel, said his client confessed his theft to federal prosecutors and to his employer.
“Neither was aware of the theft he had engaged in before he advised them,” Himmel said today in a phone interview. “David has had a sports-betting gambling problem since he was in high school. That problem has obviously escalated over the years and was the motivation behind the theft.”
The case is U.S. v. Newmark, U.S. District Court, District of New Jersey (Newark).
--Editors: Peter Blumberg, Fred Strasser
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