Hedge Fund Manager Mueller To Plead Guilty

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Sean Mueller, the Colorado hedge fund manager who threatened suicide just before the collapse of his alleged $20 million Ponzi scheme, will plead guilty to defrauding investors.

Mueller was charged with racketeering, securities fraud and theft last week. On Friday, he waived his right to a preliminary hearing, and his attorney said that a plea deal has been reach with prosecutors.

"We have reach an agreement that will be settled," Rick Kornfield said. The plea deal will be made public at a Nov. 1 hearing.

Mueller has been held in custody since turning himself in last week, and has not sought bail. "Mr. Mueller is very sorry and very remorseful," Kornfield said. "It is genuine."

According to prosecutors, Mueller lied to investors about the size and success of his Mueller Capital Management and its Mueller Over Under Fund. According to the state’s lawsuit against him, Mueller admitted he scammed investors in a series of e-mails and notes written prior to his suicide attempt in April, when he was talked down from a building in suburban Denver. In a note written after the suicide attempt, Mueller admitted that documents claiming his Over-Under Fund managed $122 million were falsified. He wrote that only $15 million remained of the $20.6 million he collected.

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