NYU Whiz Kid Changes Plea in Fraud Scam

NEW HAVEN, Conn. -- A former New York University student whose hedge fund cost investors millions of dollars, will withdraw his not guilty pleas Tuesday and resolve two federal fraud cases, according to a court calendar.

Prosecutors say 22-year-old Hakan Yalincak lured investors to his fund by posing as a member of a wealthy Turkish family. The fund didn't exist and investors lost more than $7 (M) million dollars.

The court calendar doesn't say what charges Yalincak will plead to. Defense attorney Jeremiah Donovan, who represents Yalincak's mother, Ayferafet in the hedge fund case, said the plea deal doesn't cover his mother.

Prosecutors say the family spent the money on luxuries, including a Porsche. Prosecutors say 1-and-a-quarter (M) million dollars from the fund was donated to NYU to keep up the family's wealthy appearance.

The change-of-plea hearing also is scheduled to resolve a bank fraud case in which Yalincak is accused of passing $43 (M) million dollars worth of bad checks in a check-kiting scheme.

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