Embezzling Millions -- Charge Against Greenwich Hedge Fund Comptroller

The comptroller for a Greenwich-based hedge-fundis facing a wire fraud change that he embezzled millions of dollars from the fund that employed him.

U.S. Attorney Deirdre M. Daly and FBI Special Agent-in-Charge of the New Haven FBI Bureau Patricia M. Ferrick announced late Wednesday that Lawrence J. Herzing, 45, of Greenwich, was arrested on Wednesday on a federal criminal complaint alleging that he embezzled millions of dollars from the hedge fund where he was employed.

Herzing was recently employed as the controller of Greenwich-based Contrarian Capital Management, LLC and is accused of using his position to wire funds from his employer to accounts that he controlled 32 times between 2004 and 2013, according to a statement released by Daly’s office. Two fraudulent wire transfers specifically alleged in the complaint totaled more than $2.4 million.

Herzing appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $5.6 million bond, $2.6 million of which will be secured by Herzing’s Greenwich residence.

The complaint charges Herzing with wire fraud, an offense that carries a maximum term of imprisonment of 20 years.

This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Heather Cherry.