On Wednesday, Kosta Kovachev was sentenced to three years and ten months in prison. Kovachev previously admitted to helping Marc Dreier defraud hedge funds into making tens of millions of dollars in bogus investments, and pleaded guilty to conspiracy to commit securities fraud.
In November 2009, Kovachev admitted to helping Dreier by pretending to be an inside accountant for Solow Realty & Development, and also impersonating Solow’s CEO in a phone call with investors.
The New York Times reports that between 2006-2007, Dreier sold more than $100 million in fictitious securities to hedge funds. Dreier is currently serving a 20-year prison sentence.