New York

Ex-executive at NY bank gets 4 years in prison in $38M fraud

Joined by his wife, former New York investment bank executive Andrew Caspersen leaves Manhattan federal court Friday, Nov. 4, 2016 in New York, after he was sentenced to four years in prison for cheating mostly family and friends of over $38 million. Judge Jed Rakoff credited his gambling addiction as reason for leniency. (AP Photo/Larry Neumeister)

Joined by his wife, former New York investment bank executive Andrew Caspersen leaves Manhattan federal court Friday, Nov. 4, 2016 in New York, after he was sentenced to four years in prison for cheating mostly family and friends of over $38 million. Judge Jed Rakoff credited his gambling addiction as reason for leniency. (AP Photo/Larry Neumeister)  (The Associated Press)

A former executive at a New York investment bank who admitted defrauding investors of more than $38 million has been sentenced to four years in prison.

Manhattan federal Judge Jed Rakoff announced the sentence for Andrew Caspersen on Friday, saying he was convinced Caspersen's gambling addiction was a major factor in his crime. Caspersen had pleaded guilty to securities and wire fraud. He is the son of the late Finn M.W. Caspersen, a prominent philanthropist and former chief executive of Beneficial Corp.

Prosecutors say he scammed clients of PJT Partners Inc. into investing millions of dollars in sham private equity investments. They say he invented fictional financiers, created fake email addresses and arranged misleading domain names to carry out his fraud from July 2015 through March.