Andrew Caspersen, the Wall Street executive accused of scheming to defraud investors out of as much as $95 million, is expected to appear in federal court on Tuesday as prosecutors file papers that often indicate a plea may follow later.
The office of U.S. Attorney Preet Bharara in Manhattan said Caspersen will be arraigned on Tuesday afternoon, and that a so-called criminal information, which often precedes or accompanies a plea, will be filed with the court.
Caspersen was charged with securities fraud and wire fraud following his arrest in late March.
Paul Shechtman, a lawyer for Caspersen, in an email said there will be no plea on Tuesday. He had said in an April 13 hearing that he thought the case could be resolved by now.
Tuesday’s hearing will be before U.S. District Judge Jed Rakoff in Manhattan, Bharara’s office said.
The defendant is a son of late Wall Street financier Finn M.W. Caspersen, the former chairman of consumer finance company Beneficial Corp, and graduated from Princeton University and Harvard Law School.
Andrew Caspersen had worked at Park Hill Group, now a unit of veteran investment banker Paul Taubman‘s PJT Partners Inc (PJT.N), prior to his arrest and eventual firing.
Prosecutors accused Caspersen of cheating a charitable foundation affiliated with hedge fund billionaire Louis Bacon‘s Moore Capital Management out of $24.6 million, and an investor at the fund out of $400,000.
PJT on April 8 said Caspersen also defrauded a small number of family and friends out of another $14 million.
Prosecutors said Caspersen diverted some of his victims’ money for personal options trading, resulting in a large loss, and to cover up unauthorized wire transfers.
Caspersen joined Park Hill in 2013, when it was part of private equity firm Blackstone Group LP (BX.N). It was later spun off.
The case is U.S. v. Caspersen, U.S. District Court, Southern District of New York, No. 16-mj-02011.
(Reporting by Jonathan Stempel in New York; Editing by Phil Berlowitz)
Photo: Andrew Caspersen (R) departs after a hearing at the U.S. Federal Court in New York March 28, 2016. REUTERS/Lucas Jackson