Greenwich Hedge Fund Controller Pleads Guilty to Bilking $9 Million

The controller of a Greenwich hedge fund has pleaded guilty to embezzling more than $9 million from his employer.

Lawrence J. Herzing, 45, of Greenwich, pleaded guilty Thursday before U.S. District Judge Jeffrey Alker Meyer in Bridgeport to one count of wire fraud stemming from his theft of more than $9 million from the hedge fund where he was employed, according to a statement from Connecticut’s U.S. Attorney Deirdre M. Daly and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation.

According to court documents and statements made in court, Herzing recently was the controller of Greenwich-based Contrarian Capital Management, L.L.C. On 32 occasions between 2004 and 2013, Herzing used his position to wire $9,202,417.54 from his employer to accounts that he controlled.

Herzing was arrested on Oct. 29, and is free on a $5.6 million bond.

Meyer scheduled sentencing for April 24, at which time Herzing faces a maximum term of imprisonment of 20 years, a fine and an order of restitution. Herzing also has agreed to forfeit his residence and approximately $1.8 million.

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