Fund Manager Berger Charged as Clients Allegedly Lose at Least $400 Million

Michael W. Berger, a 28-year-old fund manager who raised $575 million from wealthy individuals and institutions, lost most of that money betting against Internet stocks and sought to conceal the blunder from investors, federal prosecutors charged Thursday in a criminal complaint.

Charged with securities fraud and a separate count of fraud under the Investment Advisors Act, Berger faces up to 10 years in prison on the securities fraud charge and five years if convicted of violating the Investment Advisors Act, as well as fines of up to $1.25 million.

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