Acting United States Attorney William J. Edwards (Northern District of Ohio) and United States Attorney Gregory Lockhart (Southern District of Ohio) announced that Mark D. Lay was sentenced today for his role in mismanaging over $200 million in public funds. The Court sentenced Lay to 12 years imprisonment followed by three years of supervised release. The Court also ordered Lay to pay $212,967,084.76 in restitution to the Ohio Bureau of Workers’ Compensation and to forfeit $590,526.23, which represents the amount of compensation Lay received from MDL Capital Management for managing the Active Duration Fund. The Court denied Lay’s motion for bond pending appeal and remanded him immediately into custody. Lay’s sentence follows his October 2007 conviction of investment advisory fraud, two counts of mail fraud and conspiracy to commit mail fraud and wire fraud.
Acting United States Attorney William Edwards said this of the sentence, “Mark Lay used a computer and a telephone to steal over $200 million from injured workers and their families. Today, the Court ordered Lay to start paying for his crime.”
The investigation was conducted by a task force of federal, state and local law enforcement officers from the offices of the Inspector General for the State of Ohio; the Ohio State Highway Patrol; the Ohio Ethics Commission; the OBWC Special Investigations Department; the Ohio Department of Commerce, Division of Securities; and the Cleveland and Cincinnati Divisions of the Federal Bureau of Investigation, as well as prosecutors from the Franklin and Lucas County Prosecutors’ Offices; the Columbus City Prosecutor’s Office; and the Offices of the United States Attorneys for the Northern and Southern Districts of Ohio. The case was prosecuted by Assistant United States Attorneys Benita Y. Pearson and Antoinette T. Bacon (NDOH) and Brenda Shoemaker (SDOH).
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