A former San Francisco investment fund manager was sentenced today in federal court to four years and three months in prison for a scheme that defrauded investors out of $4 million, prosecutors said.
Edward Ehee, 46, of Walnut Creek, pleaded guilty in January 2009 to one count of wire fraud, one count of tax evasion and one count of making and subscribing a false tax return, according to the U.S. attorney’s office.
As part of the plea, Ehee admitted that between 2001 and 2006 he defrauded investors by convincing them he would invest their money in securities markets using complex, low-risk, high-return trading strategies.
Instead, prosecutors said, Ehee used the money from new investors to pay existing investors and for personal expenses.
Ehee was also sentenced to three years of supervised release and to pay restitution to the victims, the U.S. attorney’s office said.