Hedge Fund Executive Accused of Tricking Charity

A former hedge fund executive lied to a U.K. charity, so an associate could repay part of an $18 million loan owed to the tainted hedgie, according to a 10-count indictment unsealed Wednesday in Brooklyn federal court.

Michael Cohen, 46, formerly of Och-Ziff Capital Management, duped the charity into buying stock in a mining company—without telling it $4 million was going to a man who had borrowed $18 million to buy a yacht, court papers charge.

The man had fallen behind in repaying the loan, so Cohen instructed the charity to buy the shares without telling it the cash was going to end up in his pocket, prosecutors allege.