US Prosecutors Drop $300 Million Fraud Indictment Against Jeffrey Spotts
Updated
Updated · Bloomberg · Jun 6
US Prosecutors Drop $300 Million Fraud Indictment Against Jeffrey Spotts
1 articles · Updated · Bloomberg · Jun 6
Summary
$300 million in fraud charges against former Prophecy Asset Management executive Jeffrey Spotts were dismissed Friday, wiping out a federal case that had been set for trial on July 6 in Trenton, New Jersey.
Prosecutors gave no explanation in asking the judge to throw out the indictment, despite alleging Spotts worked with Brian Kahn to cheat hedge fund investors.
Brian Kahn—the disgraced founder of Franchise Group—and former Prophecy executive John Hughes had already pleaded guilty and were expected to testify against Spotts.
The dismissal removes one of the remaining contested cases tied to the Prophecy fraud probe that had put Kahn at the center of a hedge fund investor scheme.