Fund Manager to Pay $110 Million in SEC, DOJ Fraud Cases

Ofer Abarbanel to pay $21 million in SEC case after $89 million payment in DOJ criminal case

Published on Feb. 27, 2026

Got story updates? Submit your updates here. ›

A California mutual fund manager will pay a total of $110 million in disgorgement and interest to resolve SEC and DOJ fraud cases. Ofer Abarbanel, who was convicted and sentenced to four years in prison in 2023 for defrauding investors, agreed to pay an additional $21 million to the SEC after receiving approval from a judge in the U.S. District Court for the Southern District of New York. The $89 million payment was mandated in a parallel DOJ criminal case.

Why it matters

This case highlights the ongoing efforts by federal authorities to crack down on investment fraud and hold fund managers accountable for deceptive practices that harm individual and institutional investors. The substantial monetary penalties imposed on Abarbanel serve as a warning to others in the industry about the serious consequences of fraudulent behavior.

The details

Ofer Abarbanel, a California-based mutual fund manager, was convicted and sentenced to four years in prison in 2023 for defrauding investors. As part of the resolution of the SEC's enforcement action, Abarbanel has agreed to pay an additional $21 million in disgorgement and interest, on top of the $89 million payment he was required to make in the parallel DOJ criminal case.

  • Abarbanel was convicted and sentenced to four years in prison in 2023.
  • The SEC enforcement action and $21 million payment were approved by a judge in the U.S. District Court for the Southern District of New York in February 2026.

The players

Ofer Abarbanel

A California-based mutual fund manager who was convicted and sentenced to four years in prison in 2023 for defrauding investors.

U.S. District Court for the Southern District of New York

The federal court that approved the SEC enforcement action and $21 million payment by Ofer Abarbanel.

Securities and Exchange Commission (SEC)

The federal agency that brought the enforcement action against Ofer Abarbanel, resulting in an additional $21 million payment.

U.S. Department of Justice (DOJ)

The federal agency that brought the criminal case against Ofer Abarbanel, resulting in a $89 million payment.

Got photos? Submit your photos here. ›

The takeaway

The substantial monetary penalties imposed on Abarbanel serve as a warning to others in the industry about the serious consequences of fraudulent behavior. This case demonstrates the commitment of federal agencies like the SEC and DOJ to protect investors and maintain the integrity of the financial markets.