A Levittown man who pleaded guilty to wire fraud last year was sentenced Friday to nearly five years in prison, federal officials said.
U.S. District Judge Arthur D. Spatt sentenced former hedge fund manager Eric Erb, 40, to 57 months in prison with three years’ supervised release for his role in a scheme to bilk investors in a hedge fund he ran from his Bay Shore office, prosecutors said.
Erb also must pay $5.3 million in restitution, a $5.3 million forfeiture judgment, and forfeit $215,000 in proceeds he earned from the sale of his home in Bay Shore, according to a news release from the office of the U.S. Attorney for the Eastern District of New York.
An attorney for Erb could not be reached Friday night for comment.
The crimes took place between January 2016 and February 2017, officials said.
Erb admitted in his plea in August 2017 to stealing approximately $3 million from 38 investors whose money he used for his personal expenses — including home renovations, country club dues and private school tuition — all the while sending investors bogus statements saying their investments were thriving under his management, prosecutors said.
“Erb blatantly lied to investors who entrusted him with their hard-earned retirement savings, stealing from them to finance his own lifestyle of country club dues, home renovations and private school tuition,” stated Richard P. Donoghue U.S. Attorney for the Eastern District of New York.
“Erb’s scheme had a devastating impact on his victims, leaving them to suffer financial losses directly and personal losses indirectly,” said FBI Assistant Director-in-Charge William F. Sweeney. “The FBI is committed to working with our law enforcement partners to ensure this type of behavior ceases to exist.”