Lawrence J. Herzing, 45, of Greenwich, was arrested on Wednesday on a federal criminal complaint alleging that he embezzled millions of dollars from the hedge fund where he was employed.
The arrest was announced by Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation.
As alleged in the criminal complaint, Herzing was recently employed as the controller of Greenwich-based Contrarian Capital Management, L.L.C. On 32 occasions between 2004 and 2013, Herzing used his position to wire funds from his employer to accounts that he controlled. Two fraudulent wire transfers specifically alleged in the complaint totaled more than $2.4 million.
Following his arrest, Herzing appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $5.6 million bond, $2.6 million of which will be secured by Herzing’s Greenwich residence.
The complaint charges Herzing with wire fraud, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Heather Cherry.