Former Greenwich Hedge Fund Controller Receives 4-Year Jail Term for $9 Million Embezzlement Scheme

The former controller of a Greenwich hedge fund who pleaded guilty to embezzling $9 million from his employer has been sentenced to four years in prison.

Connecticut’s United States Attorney Deirdre M. Daly, announced on Monday that Lawrence J. Herzing, 45, of Greenwich, was sentenced on Friday by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for embezzling more than $9 million from the hedge fund Greenwich-based Contrarian Capital Management, LLC, where he was the controller.

Herzing was accused of wiring a total of $9,202,417.54 on 32 occasions between 2004 and 2013, from his employer to accounts that he controlled.

Meyer also ordered Herzing to pay full restitution. Herzing has forfeited his residence and funds seized from his accounts, totaling more than $5 million.

Herzing was arrested on Oct. 29, and on Jan. 29, he pleaded guilty to one count of wire fraud.

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

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