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A Pittsburgh hedge fund manager was convicted Tuesday of defrauding Ohio’s workers’ compensation system.

Mark Lay, CEO of MDL Capital Management, faces up to 20 years in prison for investment advisory fraud, mail fraud and conspiracy to commit mail and wire fraud.

The charges were linked to the loss of $216 million he invested for the Ohio Bureau of Workers’ Compensation in a highly-leveraged hedge fund without authorization.

Prosecutors contended that Lay took risks far greater than allowed by his agreement with the BWC and concealed what he was doing from the BWC’s investment staff.

Lay’s attorney claimed that a poor investment choice did not constitute a crime.

Lay was charged along with several others in connection with an investigation into BWC investments sparked by GOP fund-raiser Tom Noe’s theft from a $50 million rare-coin fund that he handled for the agency.

For more information on this subject, please refer to the section on Workers Compensation.

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