Michael Lauer, a former hedge fund manager, and four other men accused of defrauding investors of more than $200m were indicted on conspiracy and fraud charges yesterday and could face 25 years each in prison.

The US justice department said Mr Lauer, the former manager of the Lancer hedge fund, along with Martin Garvey, Eric Hauser, Laurence Isaacson and Milton Barbarosh, was at the heart of a $200m (€136m, £103m) fraud at Lancer Group's hedge funds between 1999 and 2003.