Recall the saga of Bayou Management, one of the more shocking hedge fund blow ups ever. At one point, the fund managed $400 million, but it was apparently built via fraud, an amateurish one at that--fake account statements and the like. It all crashed soon enough in a well-covered drama that featured suicide notes and irate customers. Now the players are paying the price. James Marquez, 59, just got 51 months in prison and then two years of supervised release, according to media reports. He also must pay nearly $6.3 million. Samuel Israel III, Bayou's chief executive, and Daniel Marino, the CFO, will be sentenced later.  

For more:
- here's an article in the New York Times