PRESS RELEASE

WESTBOROUGH MAN SENTENCED FOR INVESTMENT FRAUD

BOSTON, MA - A Westborough man was sentenced today in federal court on thirteen counts of mail and wire fraud in connection with his scheme to defraud investors and falsify account records to hide the true account activity.

United States Attorney Michael J. Sullivan and Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation New England Field Division, announced today that MARK R. CONWAY , age 45, was sentenced to seven years years imprisonment, to be followed by three years years of supervised release, and payment of restitution in the amount of $20,000,000. CONWAY pleaded guilty to thirteen counts of mail and wire fraud on October 23, 2006 .

At the earlier plea hearing, the prosecutor told the Court that had the case proceeded to trial the Government’s evidence would have proven that CONWAY acted as the managing partner of Groundswell Partners LLC, the general partner of a quantitative systematic hedge fund. During the period January 2001 through October 2005, CONWAY represented to investors that he would follow a particular trading strategy that he had developed. In fact, shortly after establishing the Fund and to cover losses from a poor trade, CONWAY abandoned the advertised trading strategy and began falsifying financial statements relating to the Fund’s assets and operations in an effort to hide the loss. CONWAY’s misrepresentations served to induce additional persons to invest and to induce existing clients to stay with the Fund and to increase their investments. CONWAY defrauded more than 50 victims out of more than $20,000,000.

The government has civilly forfeited approximately $15,000,000 in funds from bank accounts controlled by CONWAY and will apply the forfeited funds to the restitution amount to be returned to CONWAY’s victims.

The case was investigated by the Federal Bureau of Investigation New England Field Division, with assistance from the United States Securities & Exchange Commission . It was prosecuted by Assistant U.S. Attorney Lori J. Holik of Sullivan’s Economic Crimes Unit.