Former CFO Charged And Pleads Guilty To Defrauding Hedge Fund Of More Than $3 Million

United States Attorney for the Southern District of New York, Jamie McDonald, and Inspector in Charge of the New York Division of the U.S. Postal Inspection Service ("USPIS"), Ketty Larco-Ward, announced today the filing of an Information charging THEODORE WOO, the former CFO of a hedge fund, with securities fraud. The charge results from WOO's yearslong scheme to steal from the fund by submitting and approving falsified invoices, causing the fund to transfer money directly into accounts controlled by WOO, and incurring unauthorized personal expenses on credit cards paid by the fund. WOO pled guilty today before U.S. Magistrate Judge Valerie Figueredo and is scheduled to be sentenced by U.S. District Judge Lewis A. Kaplan on November 18, 2026.

"For years, Theodore Woo flagrantly abused his position of trust and brazenly stole from his employer to line his own pockets," said U.S. Attorney Jamie McDonald. "To do so, Woo took advantage of his position as CFO, misled his employer, and falsified documents. Lies and deception are not worth the risk of criminal prosecution. Today's charge and plea are indicative of this Office's commitment to holding C-suite executives accountable when they engage in fraud."

"Woo's arrest shows that greed and deceptive tactics do not pay," said USPIS Inspector in Charge Ketty Larco-Ward. "For years Woo allegedly cheated this company out of millions and used this money as his own personal piggy bank. The United States Postal Service will continue to investigate and prosecute this type of illegal activity, as we seek to protect the public from financial fraudsters."

According to the Information:

Beginning shortly after he began working for the fund and continuing until his termination in March 2026, WOO embezzled millions of dollars from the fund through a series of fraudulent transactions, including making millions of dollars in fraudulent payments to entities controlled by WOO and spending thousands of dollars on unauthorized personal expenses using credit cards paid by the fund.

As the CFO, WOO handled back-office tasks for the fund and had the authority to authorize the fund's administrator to process reimbursement requests. In that capacity, WOO instructed the fund administrator to make millions of dollars in payments to two entities, TWDRR LLC and MGTW LLC, for claimed "Research Consulting Services." WOO also sent invoices from those two entities that falsely represented that they had rendered services for the fund. In actuality, WOO controlled both entities, and neither entity had performed any service for the fund. To further conceal his theft, WOO falsely claimed to the fund's external auditor that MGTW LLC was an independent research consulting firm engaged by the fund to develop short investment ideas on a project-by-project basis.

WOO also had the authority to effectuate transfers of cash from the fund to third parties, as the CFO. Over the course of his employment with the fund, WOO caused over 100 fraudulent transfers from the fund to a corporate entity controlled by WOO and to bank accounts in WOO's name.

Finally, while serving as CFO, WOO opened and controlled multiple credit cards in the name of the fund, and charged unauthorized personal expenses to those cards, including thousands of dollars in charges to adult entertainment establishments and international vacations.

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WOO, 49, of Miami, Florida, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. McDonald thanked the USPIS for its outstanding work. Mr. McDonald also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.

This case is being handled by the Office's Securities and Commodities Task Force. Assistant U.S. Attorneys Sarah Mortazavi and Christy Slavik are in charge of the prosecution.