Reply #7: I read some interesting speculation on the motive for his confession

[teotwawki]

The gist of it was he really just lost the money with bad investments (like many other hedge funds recently) and rather than fess up to that, he is pleading guilty to fraud so that his clients can get the sipc insurance money.

You just have to wonder since so many of his clients were family and friends... I bet taxpayers end up bailing out the insurers too :(