(HedgeCo.Net) A hedge fund manager based in Greenwich has pleaded guilty to federal tax evasion and embezzlement charges related to a multi-million-dollar fraud scheme. Greenwich Time
Details of the Case
Sixty-three-year-old Jeffrey Arsenault — who managed Old Greenwich Capital Partners LP — admitted to siphoning over $5 million from clients and diverting funds for personal use, including luxury expenses. Prosecutors revealed that Arsenault falsified inter-company loans and misclassified distributions to conceal his misconduct from investors and regulators. Greenwich Time
The defendant also failed to report millions in income from consulting services and other sources, triggering a separate IRS investigation. Arsenault faces up to five years in prison and agreed to repay over $6.7 million in restitution and back taxes. Greenwich Time
Implications for Industry Oversight
This case comes amid heightened regulatory and compliance scrutiny across the hedge fund space — as firms and allocators grapple with transparency demands and risk management post-2022 market turbulence. The enforcement action underscores the continuing importance of robust internal controls and ethical investment practices to uphold investor trust and market integrity. Greenwich Time