Ex-broker settles GLT lawsuit

Justin Paperny, a former UBS broker in Century City who last year pleaded guilty to aiding a hedge-fund manager’s fraud, settled a related civil lawsuit brought Monday by the Securities and Exchange Commission.

Paperny agreed to pay fines and forfeit gains in amounts to be set later, the SEC said.

The former broker collected $220,500 in commissions and other payments while helping people invest in the Valencia-based GLT Venture Fund from 2002 to 2004, even though he knew the fund’s manager was defrauding them, the SEC said in its suit.

The fund raised $14.1 million, most of which was misappropriated or lost through unprofitable trades, the agency alleged. GLT manager Keith Gilabert pleaded guilty in 2006 to conspiracy to commit fraud.

Paperny, 36, didn’t admit or deny wrongdoing in the SEC settlement. His attorney didn’t return a call seeking comment.

Paperny pleaded guilty in February to one count of conspiracy to commit mail, wire and securities fraud. He has since been cooperating with federal prosecutors.