No More ‘Hedging’ the Law for Former Quogue N.Y. Mayor

George Motz, president and CEO of Melhado, Flynn & Associates and ex mayor of Quogue, N.Y, finally admitted his role in a $2.2 million securities fraud. The company diverted their clients’ money into their own hedge fund accounts, leaving investors to lose more than $1.4 million.

Motz pleaded guilty in front of U.S. District Judge Arthur Spatt at a federal court in Central Islip, N.Y. and faces a possible 25-year prison term. The former mayor admitted that the motive behind the fraud was purely for personal gains. A reduced sentence is not likely even though Motz was released on a bond of $500,000 and was ordered to report to probation authorities.