Wymer Begins 14 1/2-Year Prison Term for $92-Million Fraud

A former Newport Beach money manager who was convicted of defrauding small cities and government agencies of $92 million entered the federal prison camp here Wednesday to begin serving a 14 1/2-year sentence.

Steven D. Wymer, former chief of Institutional Treasury Management in Irvine, reported to the minimum-security camp about noon, said Todd Craig, camp administrator.

Wymer, 44, was sentenced in May after pleading guilty to nine felonies. He also agreed to forfeit $9 million in assets and to repay clients.

Most of Wymer’s clients were small cities and agencies in Iowa, Colorado and California seeking a safe investment for surplus cash. Wymer promised them big returns but engaged in high-risk deals.

The Securities and Exchange Commission detected the fraud in 1991, accusing Wymer of wrongdoing at Institutional Treasury Management and its predecessor, Denman & Co.

The biggest victim was the Iowa Trust Fund, which lost more than $75 million from the accounts of 88 cities, counties and government agencies.

Wymer said his crimes stemmed from trying to cover up a single loss that snowballed as he shifted money from one account to another to hide shortages.

But prosecutors said he used the money to buy sports cars, resort homes and a Newport Beach mansion.

Wymer has been cooperating with his victims as they attempt to recoup their losses. His plea bargain requires prosecutors to reopen a sentencing hearing after a year for possible reduction if he continues to cooperate.