Short Hills Investment Manager Gets Jail Time, Must Pay $1M Civil Penalty

MILLBURN, NJ — An investment manager with an office in Short Hills was sentenced Thursday to 33 months in prison for fraudulently inducing investments, concealing investment losses and diverting more than $675,000 in investor money for his own use, prosecutors say.

Mark Moskowitz, 48, of Short Hills, previously pleaded guilty before U.S. District Judge Katharine Hayden to an information charging him with one count of wire fraud, according to Acting U.S. Attorney (New Jersey) William Fitzpatrick.

Hayden imposed the sentence Thursday in Newark federal court, prosecutors said.

In a separate legal proceeding, the New Jersey Bureau of Securities ordered Moskowitz and his trading company, Edge Trading LLC, to pay a $1 million civil penalty for selling unregistered fraudulent securities and misusing investors’ funds for personal expenses.

According to court documents and statements, Moskowitz controlled an investment fund under the names Edge Trading Partners L.P. and Edge Trading LLC (Edge Trading). In addition to touting his investment skill and experience, Moskowitz concealed losses from investors and falsely told them that Edge Trading was growing year after year. Based on these misrepresentations, investors continued to entrust additional funds to Moskowitz and left previous investments under his control.

Prosecutors stated:

“Edge Trading was an investment fund that Moskowitz created and operated, starting in or around 2012. Moskowitz told investors that Edge Trading was invested in U.S. and foreign equities, futures contracts, and option contracts and that the fund’s investments continued to show positive returns. In reality, Moskowitz redirected investor money to his personal use, which he concealed from the investors.”

In addition to the prison term, Judge Hayden sentenced Moskowitz to three years of supervised release and ordered restitution and forfeiture of $694,577, prosecutors said.

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Originally published July 27, 2017.

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