Oct 30 2014 | 11:01am ET A former Contrarian Capital Management executive used his access to the hedge fund’s books to enrich himself to the tune of $12 million, according to prosecutors. Lawrence Herzing was arrested yesterday and charged with wire fraud. According to the indictment, he made at least 32 improper transfers from Contrarian to accounts he controlled, including $2.4 million in August 2013 alone. The transfers “did not correspond to any legitimate payments or investments necessary to Contrarian Capital’s business,” prosecutors said. Herzing, who served as the Greenwich, Conn.-based firm’s controller, faces up to 20 years in prison. He was released on $5.6 million bond following a hearing yesterday. Contrarian, which has about $4 billion in assets, said that clients would be fully reimbursed. “Upon discovery that a former employee misappropriated funds, Contrarian immediately commenced a review with outside advisers, reported the matter to the authorities, and is cooperating fully with their investigation,” the firm said.