The former chief financial officer of a Miami Beach hedge fund admitted he embezzled more than $3 million over four years at the firm, approving phony invoices and using corporate credit cards for adult entertainment and personal travel. The guilty plea was entered in federal court, with the defendant facing a potential prison sentence of up to 20 years. Court documents detail how the CFO exploited his position to authorize fake vendor payments and charge personal expenses to company credit cards, including luxury hotel stays and adult entertainment.

The scheme ran from 2018 to 2022, during which he siphoned funds from investor capital and operational accounts. Prosecutors noted that the embezzlement was uncovered during a routine audit. The hedge fund, which has not been named in court filings, cooperated with the investigation.

Sentencing is scheduled for later this year, and the defendant has agreed to forfeit assets purchased with the stolen money, including a yacht and properties.