U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19515 / December 22, 2005
United States of America v. Scott Sacane (United States District Court for the District of Connecticut Criminal No. 3:05-cr-325-AHN)
Securities and Exchange Commission v. Scott R. Sacane, et al., (United States District Court for the District of Connecticut, Civil No. 3:05cv1575-SRU - Filed October 12, 2005)
Hedge Fund Manager Pleads Guilty to Investment Adviser Fraud
The Securities and Exchange Commission ("Commission"), announced today that on December 21, 2005, Scott R. Sacane, age 39, of Weston, Connecticut, pled guilty to a one-count information charging him with investment adviser fraud in a case being prosecuted by the United States Attorney's Office in New Haven, Connecticut.
On October 12, 2005, the Commission sued Sacane and others, alleging that they manipulated the stock of Aksys, Ltd., and Esperion Therapeutics, Inc. Sacane's guilty plea stems from the same conduct that formed the basis of the Commission's civil enforcement action. In particular, the Information filed by the U.S. Attorney's Office charged that Sacane was an investment adviser to the Durus Life Sciences Fund, LLC, Durus Life Sciences International Fund, Ltd., and Durus Life Sciences Master Fund, Ltd. (collectively, "the Durus Funds"). The Information further charged that Sacane knowingly and willfully inflated the value of the Durus Funds, thereby garnering increased management fees and performance incentive fees to which he was not entitled.
Judge Alan H. Nevas, of the United States District Court for the District of Connecticut, scheduled sentencing for April 28, 2006 at 10:00 a.m. Sacane faces a maximum sentence of 5 years imprisonment and a fine of $250,000.
For further information, please see: Litigation Release No. 19424 (October 12, 2005).