SEC Says Jailed Trader Cost Ohio|Workers Comp Fund $160 Million

     PITTSBURGH (CN) – Mark Lay, CEO of MDL Capital Management, defrauded the Ohio Bureau of Workers’ Compensation $160 million by risky and unsuccessful trading, the SEC claims in Federal Court. Lay exceeded his promise not to exceed a “150% leverage guideline” by “using leverage of over 21,000%” and failing to disclose it, the SEC says.

     Lay, 44, of Aliquippa, Pa., was chairman, CEO and “chief investment strategist” of MDL Capital. He was convicted of criminal wire fraud, mail fraud and investment adviser fraud on Oct. 30, 2007. He’s in prison. His bad bets drove the Ohio workers comp fund investment down from $200 million to $30 million, the complaint states. The SEC wants what money it can get from the defendants, whose frauds occurred in 2004.

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