David Newmark, former chief financial officer of investment-management firm Columbus Hill Capital Management LP, was sentenced to 54 months in prison for embezzling more than $10.4 million.
Newmark, 39, was sentenced today in federal court in Newark, New Jersey, where he pleaded guilty to wire fraud and tax evasion on Jan. 18. He admitted that he created a phony account to collect deposits that he stole from the Short Hills, New Jersey-based company, and he agreed to forfeit the entire amount that he stole.
Newmark attorney Michael Himmel didn’t immediately return a call seeking comment after the hearing. In an interview after the guilty plea, Himmel said that Newmark, of Towaco, New Jersey, has had a sports-betting gambling problem since high school, and that motivated his theft.
U.S. District Judge William Walls ordered Newmark to pay $10.4 million in restitution. On May 16, Walls signed a preliminary order of forfeiture, court records show. The U.S. has recovered $1.6 million so far, according to a statement today by U.S. Attorney Paul Fishman.
The case is U.S. v. Newmark, 12-cr-36, U.S. District Court, District of New Jersey (Newark).
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